JOB , IT / TELECOMS – HTC mobile phone maker cuts one-fifth of its employees

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About 1,500 jobs, about one-fifth of the workforce, can be removed from HTC's mobile phone manufacturer in Taiwan. The company is struggling with the economy.

HTC is striving to keep the lead out of the water in the competition against Apple, Samsung and Huawei. The closing plan announced Tuesday will be implemented by the end of September.

Last year, HTC recorded a loss of $ 554 million, or about $ 4.5 billion, and a loss per share of about $ 5.50. This was the biggest deficit of HTC after its IPO in March 2002.

The last quarter of last year was the deficit of about 2 billion, the worst quarter of the year. # 39; history of the company.

Tuesday's announcement takes place despite the fact that HTC could post positive numbers in the first quarter of this year – a profit of 5.6 billion. This change is related to the HTC agreement in January with Google. This deal worth $ 1.1 billion was based on the fact that Google was taking charge of half of HTC's development team, or about 2,000 employees.

Analysts also speculated that the deal would provide immediate positive gains for HTC, but felt that in the long run this would not be enough to guarantee Taiwanese society lasting positive numbers.

HTC has also undergone a process of downsizing. In 2015, the company removed more than 2,000 positions, which then accounted for 15% of the workforce.

(© NTB)