HTC confirms U.S. job cuts amid turnaround efforts

HTC confirms U.S. job cuts amid turnaround efforts

Summary: The Taiwanese phone maker confirms it will lay off more than two-dozen U.S.-based staff, without citing solid figures.

HTC One (Image: CNET)

HTC has confirmed it will cut a number of staff at its U.S. offices.

The phone maker said in a statement that the cuts were a "decisive action" by HTC to "streamline and optimize [its] organization and improve efficiencies after several years of aggressive growth."

The news was first reported by The Verge on Friday, and later confirmed by AllThingsD on Sunday.

No details were given on the number of layoffs the company plans to make, let alone the kind of employees that will be cut. Sources familiar with the matter speaking to AllThingsD said about 30 jobs were cut, while executives retained their positions.

"This is a hard decision that has direct impact on people who have contributed to the growth HTC has experienced the past several years," the statement read. "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 has struggled financially for the past few quarters, after delays have marred the firm's efforts to dish out a smartphone that grabs the eyes of the consumer market.

The company saw a 70 percent fall in net profit during its 2012 first quarter. Its revenue has fallen by shy of 35 percent compared to the same period a year ago, with the company still reeling from a painful January where revenues fell by almost 50 percent. And it also said it was facing gross margin challenges due to the high cost structure of its flagship smartphone HTC One, which was delayed getting out of the door.

After years of strong sales momentum, the company suffered a recent dropoff in sales. Many high profile executives, including its chief operating officer, have also left the firm.

In spite of a flashy advertising campaign capitalizing on the face of one of the Internet's favorite stars, the company continues to struggle in the face of the competition. 

Topic: HTC

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  • This is sad.

    I really think the HTC One might be the very best Android phone out there, but Samsung rules the airwaves with their quirky commercials. The Android world is quickly becoming the Samsung world...and with Tizen OS on the horizon, Samsung could easily take the entire smartphone market, dump Android and launch Tizen OS. They have already started removing Android from their TV's and replacing it with Tizen.
  • Sad indeed..

    HTC's decline is not so much about snazzy Samsung commercials, but because HTC failed to try to know what customers want. I was a big fan of HTC in the days on Windows Mobile. I still believe HTC devices are among the most solidly built devices. But why did I dump HTC? First was the extremely hopeless battery life of their devices. They made the HD2 (a truly great device in its time), with a 4.3" screen, but a mickey-mouse 1230mAH battery that would run out of you by midday. Samsung released a 4.3" device (Galaxy S2) with a 1600 mAH battery. Battery life was my no.1 reason for dumping HTC.

    I am a great fan of the Samsung Galaxy Note series, because of the S-Pen. The productivity I get from being able to sign documents electronically is amazing. If HTC would make reasonably- priced devices with decent battery lives and a real pen like the Wacom pen, I would choose an HTC over Samsung any day.
  • galaxy s2 vs hd2?

    Keep in mind that the hd2 launched in late 2009 and the s2 in late 2011. Comparing these devices not really fair. A direct comparison (if you like apples to apples comparisons) would be the s2 vs htc amaze. I think the amaze had a 1800 mAH BATTERY.
  • this is the problem...

    "...about 30 jobs were cut, while executives retained their positions."

    The issue isn't the middle management that was inevitably let go. It has been the incompetency of senior leadership. Does HTC think that letting go a bunch of worker bees is going to solve their issues? Look at what has been hampering HTC and you'll realize that there are fundamental problems at the top. Like their awful marketing decisions.