HTC suffers operations ding as COO steps down

Summary:The ailing smartphone maker's chief operating officer steps down, weeks after a number of high-profile executives jump the sinking HTC ship.

HTC One Image: CNET

As HTC continues to "quietly bleed," the company's chief operating officer has stepped down from his post, cranking open yet another fresh wound.

Chief operating officer Matthew Costello has stepped down, after less than three years at HTC, reports Bloomberg, only a few weeks after after the Taiwanese phone maker reported a 98 percent drop in net income in its first quarter earnings.

HTC president of engineering and operations Fred Liu has taken on Costello's responsibilities to cover operations, quality control, sales, and services. A new quality assurance division will be created to handle product reliability, according to a leaked email seen by the publication.

But he's likely not departing with much fanfare, as he will stay on as an executive adviser to the company following his move to Europe.

Costello's departure comes just a few weeks after an executive exodus , in which a number of high profile staffers have left the company. 

According to reports, the company's chief product officer Kouji Kodera left the company in mid-May just a few months after Jason Gordon, the vice president for global communications, left the firm. Product strategy chief Eric Lin also left — but not before sounding the warning bells on Twitter.

Also, digital marketing director John Starkweather and global retail marketing manager Rebecca Rowland also scarpered in recent months.

The firm's HTC One flagship phone was delayed by a number of weeks that could have led to its near-term revival, during a period of a smartphone release dry spell during April. Manufacturing delays were cited as the reason for the release push-back.

HTC said its second-quarter revenue is expected to be around $2.36 billion, with bumps in gross profit and operating margin to be 22-24 percent and 1.3 percent respectively. 

Topics: Mobility


Zack Whittaker is a writer-editor for ZDNet, and sister sites CNET and CBS News. He is based in the New York newsroom. His PGP key is: EB6CEEA5.

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