HTC suffers operations ding as COO steps down

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. 

Topic: HTC

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.


Log in or register to join the discussion
  • All the Eggs in the Wrong Basket ?

    HTC has in the past built some absolutely fantastic phones, and were leaders in the Windows Phone market from Windows 5 mobile through 6.5 to 7. They originally developed the Android platform.
    Ask anyone who ever had an HTC HD, HD2, HD7 if they would part with their phone for love or money, the answer would be a resounding NO !!!
    Then came the disasters of Windows 7.5 followed by Windows H8 ( hate ) mobile, this was the wrong basket I believe, and the ultimate cause of company blight, all because they chose to bring a phone to a niche segment of business users, they have been screwed by Microsoft ! Let this be a warning to anyone else, be careful what you get into, especially if Microsoft is involved !!!
    • Do you mean Nokia

      I think you are confused. It's Nokia who put all their eggs in the Windows Phone basket. I know people like to take every opportunity to bash MS but seriously, it looks silly when you get the company wrong. HTC has a few Windows Phone models but they are primarily and Android handset manufacturer. Nokia is the manufacturer who put all their eggs in the WP basket.

      The problem is they are competing with Samsung who has better vertical integration and is much larger enabling them to more effectively compete with the other big competitor, Apple.

      That aside, I have an HTC One and it's the best phone on the market today IMO. Just a gorgeous device that does everything well.
  • Droid DNA

    The Droid DNA (Verizon) was the first Jelly Bean quad cord with 2MB RAM on the market. I love this phone, but the new HTC One looks really sweet too.
  • HTC Still Making More Money From Android Than Nokia Is From Windows Phone

    With all its problems, HTC would still rather be HTC than Nokia.