Former Taiwanese smartphone titan HTC is to trim 15 per cent of its workforce following a 20 per cent share price tumble this week.
The gadget manufacturer's share price dipped so low its market value is now below cash on hand, which has provoked the worker restructuring.
More ReadingHTC's new One A9 will gulp Android updates days after Nexus mobesSmartphone sales looking rosy for Asus, despite PC meltdownHTC caught storing fingerprints AS WORLD-READABLE CLEARTEXTCher tells HTC: If I could turn back time ... if I could find a way (to not lose $250m in a quarter)HTC in crisis: How did it get to this point? How did it get this bad?
In fact, the tumbling price of HTC's shares has "rendered its brand, factories and buildings worthless," according to Bloomberg.
The restructuring is intended to reduce costs to the tune of a 35 per cent decrease in operating expenses, and will see new business units spun off too, one of which we hope might be doing something about the fingerprint-spaffing issue.
A Gartner smartphone report in March this year saw HTC not even placed in the top ten handset manufacturers, highlighting its complete fall from relevance.
“Worldwide sales of smartphones to end users had a record fourth quarter of 2014 with an increase of 29.9 per cent from the fourth quarter of 2013, to reach 367.5 million units,” said the research company. Samsung lost top spot to Apple in the global smartphone market in the fourth quarter of 2014.
HTC could letting about 2,300 workers go, as according to its annual report released in March of this year, the company had 15,685 staff.
CEO Cher Wang stated that the "strategic realignment of our business will ensure that each product group has the right focus, the right resources and the right expertise to win new markets". Watch this space for more updates. ®