HTC To Layoff A Quarter Of Staff After Years Of Losing Money

HTC’s plan for another round of job cuts in Taiwan illustrates just how far the once mighty smartphone maker has fallen behind its rivals, and some analysts see few apparent prospects of that changing anytime soon.

The Taipei-based smartphone maker announced on July 2 that it would lay off 1,500 workers from its manufacturing division, about one-fifth of its total workforce, HTC said in a filing to the Taiwan Stock Exchange. The job cuts come as no surprise given its long decline since 2011 when its share of the global smartphone market peaked at 10.7%, according to IDC. The research firm says HTC now only accounts for about 1% of the market.

“This is like a nightmare that keeps dragging on for HTC,” says Bryan Ma, devices research vice president with market analysis firm IDC in Singapore. HTC’s notice to the exchange said the staff cuts would help it achieve “organizational optimization” of its manufacturing units through a “strategic adjustment of human resources.” The company said it could also make further staffing decisions based on seasonal changes in the markets where its products are sold.