Htc To Cut 2 250 Jobs By The End Of This Year To Reduce Its Operating Expenses

HTC today announced that it will be slashing its workforce by 15% to reduce its operating expense by more than 1/3rd. Over the last few years, HTC has seen its market share and profit rapidly drop due to the intense competition in the smartphone market. The company managed to script a comeback in 2013 with the One M7 and followed it up with the One M8 in 2014, which along with some impressive mid-range devices allowed it to turn a minute profit for some quarters. However, with the sales of its disappointing flagship of 2015 — the One M9 — being below par, the company is once again back in the red, which has ultimately forced it to take such a drastic step. The Taiwanese OEM will be cutting about 2,250 jobs by the end of this year, which will help it reduce its operating expenses by 35%. With the smartphone market saturating and profits declining, HTC has been looking to expand beyond smartphones. The company announced a partnership with Under Armour earlier this year and will be launching a bevy of fitness tracking products later this year. The company has also partnered with Valve for a VR headset: the HTC Vibe.