Tags: HTC | job | cuts | technology

HTC Shares Jump on Plan to Reduce 15 Percent of Jobs in Turnaround

Friday, 14 Aug 2015 09:16 AM

HTC Corp. rose in Taipei trading after the struggling smartphone maker said it will trim its workforce by 15 percent to reduce costs and turn its business around.

Its shares rose 2.8 percent to close at NT$52.10 in Taipei on Friday, outpacing a 0.1 percent drop in the benchmark Taiex index.

HTC plans to cut operating expenses by 35 percent as part of a restructuring that will create new business units, it said in a statement Thursday. HTC had 15,685 employees as of March, according to its annual report, meaning it would shed about 2,300 jobs.

HTC, once the best-selling smartphone brand in the U.S., forecast a loss this quarter five-times wider than estimates. Competition from low-cost makers including Huawei Technologies Co. and Xiaomi Corp. have spurred declines in sales for HTC and undermined smartphone growth at companies from Samsung Electronics Co. to Lenovo Group Ltd.

Lenovo also said Thursday it would pare 3,200 non- manufacturing jobs, about 5 percent of its workforce, as it integrates the Motorola Mobility smartphone business it acquired from Google Inc. last year.

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HTC Corp. rose in Taipei trading after the struggling smartphone maker said it will trim its workforce by 15 percent to reduce costs and turn its business around.
HTC, job, cuts, technology
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2015-16-14
Friday, 14 Aug 2015 09:16 AM
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