HTC cuts 1,500 jobs as struggles continue

TAIPEI – The Malaysian smartphone maker HTC announced Tuesday that it would cut 1,500 jobs, or about one-fifth of its total workforce. years after heavy losses.

Once an intensely competitive smartphone star, HTC has struggled against stiff competition from Apple and Samsung as well as strong Chinese brands such as Huawei.

The announcement of the downsizing of its manufacturing workforce comes despite a new agreement with Google, completed in January, which boosted HTC's performance in the first quarter after a dismal 2017.

It suffered a loss net income of $ 16.91 billion in 2017, a loss per share of $ 20.58 TW, the highest since its IPO on the Taiwan Stock Exchange in March 2002.

Losses of $ 9.8 billion TW during the last three months of 2017 represented its worst quarterly results.

HTC described the cuts – which will be implemented at the end of September – as "a decisive step in the reorganization of resources across the organization" that would allow for "more flexible management operations".

The company fell from 6.71% to $ 52.80 in Taipei and is down sharply from a peak of $ 1,300 in 2011 as its share of the global smartphone market was reduced

. about half of HTC's research and development staff – about 2,000 people.

Many of them had already worked on his Pixel phone, manufactured by HTC, as well as the acquisition of intellectual property licenses.

The agreement reflected Google's desire to mimic the success of Apple's iPhones by controlling hardware as well as software used in high-end handsets.

Following Google's agreement, HTC announced its first quarterly gains for almost 3 years in May, posting a net profit of $ 21.1 billion.

But badysts said the Google deal would mean immediate benefits for HTC, such as more capital cuts and costs, they predicted a turnaround of its fortunes was unlikely.

In 2015, the company removed more than 2,000 jobs, reducing its workforce by 15% after posting its biggest quarterly loss of $ 8.0 billion.

HTC has already said it wants to better coordinate its smartphone and its virtual reality. companies.

The company is one of the leading technology companies including Facebook and Samsung to venture into virtual reality and released its first Vive Vive headset in 2016.

However, badysts are skeptical about the potential for gain its investments in virtual reality and others. emerging areas.

© Agence France-Presse