HTC, a Taiwanese tech giant, has announced that it will lay off 15% of its global workforce as part of a major restructuring plan. The company aims to revitalize itself amidst continued sales declines.
This decision will impact hundreds of employees as HTC faces pressure to cut costs and streamline operations. In an effort to stabilize its financial standing, the company plans to reduce its operating expenses by 35%.
The restructuring also involves the creation of new business units focusing on high-growth and profitable areas such as premium smartphones, virtual reality (VR), and related products. According to media reports, Cher Wang, CEO of HTC, emphasized the need for flexibility and dynamism to capitalize on market opportunities.
The layoffs signify HTC’s urgent need to manage costs while reorienting its focus on 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, leading to declining sales in recent years. The company’s renewed focus on premium smartphones and virtual reality indicates a strategic pivot toward sectors with the highest potential for profitability.
HTC’s VR division, powered by its popular Vive brand, has shown promising growth, particularly as virtual reality gains popularity in entertainment, enterprise, and education sectors.
