Taiwanese tech giant HTC has announced the layoff of 15 per cent of its global workforce as part of a major restructuring plan. The move is aimed at revitalising the company amid continued sales slippages.
The decision, which will affect hundreds of employees, comes as HTC faces mounting pressure to cut costs and streamline operations.
In a bid to stabilise its financial footing, the company revealed plans to reduce its operating expenses by 35 per cent. The restructuring also includes the creation of new business units, designed to focus on high-growth and profitable areas such as premium smartphones, virtual reality (VR), and related products.
According to media reports, Cher Wang, CEO, HTC believes the company requires to be flexible and dynamic to ensure that it is able to leverage all the opportunities available in the market.
Wang reportedly emphasised the need for agility and innovation in a tech landscape that is evolving rapidly, where consumer preferences are shifting towards advanced, immersive technologies.
The layoffs mark one of the company’s most significant workforce reductions in recent years, signalling HTC’s urgent need to manage costs while refocusing on its core business areas. Once a dominant player in the global smartphone market, HTC has struggled to keep up with competitors such as Apple and Samsung, experiencing declining sales in recent years.
The company’s renewed focus on premium smartphones and virtual reality indicates its strategic pivot toward sectors with the highest potential for profitability. HTC’s VR division, powered by its popular Vive brand, has seen promising growth, especially as virtual reality becomes increasingly popular across the entertainment, enterprise, and education sectors.
