BlackBerry is not the only company around which dark clouds are gathering. HTC is another company that is currently struggling and was hit with more bad news yesterday when it laid off about 20 percent of its staff at its HTC America division. The Verge has learned that about thirty employees and contractors out of around 150 staff were let go at the end of the day Friday.
HTC confirmed the layoffs to The Verge but would not provide the exact numbers. It did provide a statement that suggests it will “continue to hire in strategic areas” in a bid to turn its fortunes around:
Today’s reduction in force is a decisive action by HTC Corp (US) to streamline and optimize our organization and improve efficiencies after several years of aggressive growth. Realigning its human resources against key strategic initiatives will help HTC more effectively advance into a new stage of growth and innovation. This is a hard decision that has direct impact on people who have contributed to the growth HTC has experienced the past several years. However, to achieve our long-term goals as a business and return maximum value to our shareholders, this is a necessary step to drive ongoing innovation, ensure our ability to create strong products like the HTC One, and forge strong customer relationships that solidify our future. HTC is proud of its employees and has a track record of hiring the best and brightest; we continue to hire in strategic areas and encourage impacted employees to apply for open positions that are a fit for their skills.
HTC’s latest devices, such as the HTC One, have met with critical success but that has not translated into commercial success. The company recorded profits of only US$40 million in its second quarter and warned it might even record its first ever operating loss since going public in 2002 in Q3. More recently, company insiders told Reuters that company CEO, Peter Chou, had become an obstacle to the company’s turnaround.
It’s not clear whether the U.S. job cuts are an isolated situation or if similar actions will follow in other countries where HTC operates.
Source : The Verge