Sci-tech

HTC to lay off nearly a quarter of its workforce

HTC to lay off nearly a quarter of its workforce

HTC has previously said it wants to better coordinate its smartphone and virtual reality businesses.

After offloading 2,000 engineers to Google as part of a $1.1 billion deal with the search giant, HTC is now laying off 1,500 staff, or almost one-quarter of its total headcount, to cut more costs.

HTC will be letting go of 1500 employees from its Taiwanese manufacturing division. This represents about a quarter of the 6,450 staff it employed globally as of June, data from the company shows.

More people will lose their jobs at HTC as the device maker tries to right the ship.

"HTC continues to review its operations to ensure production resources align with key strategic initiatives, so that the company can more effectively compete in its target markets while maintaining its innovative edge", an HTC spokesperson said in a statement provided to CNNMoney.

A HTC "U11" smartphone is displayed in this illustration photo taken August 1, 2017.

In the first five months of 2018, HTC posted NT$13.33 billion (US$437 million) in consolidated sales, down 43.9 percent from a year earlier, though it reported a 16.5 percent month-on-month increase in revenue in May after launching its latest flagship phone the HTC U12+.

This follows a $1.1 billion deal late previous year under which HTC shifted around 2,000 staff, mainly handset engineers, to Alphabet's Google, casting doubts over the Taiwanese firm's longer-term future.

The layoffs will be completed by the end of September.