HTC cuts down its U.S. workforce by 20%

The smartphone manufacturer laid off 30 people following a drop off in sales

(Updated to reflect confirmation from HTC)

Really bad news anyone working for HTC in the United States.

The smartphone manufacturer laid off a big chunk of its workforce in the U.S. late last week, it has been confirmed to VatorNews.

The exact number of workers who were let go is not known, but it is somewhere around 30 employees. Given that the Taiwanese company had 150 employees in the United States, that is a reduction of 20% of its workforce. Those who lost their jobs reportedly included some design and marketing executives, according to a report from Reuters on Sunday. 

VatorNews has reached out to HTC to confirm these reports independently, and we will update if we learn more.

The company was, at one point, the largest Android vendor in the United States. But sales have been falling, dropping 31.5% this year compared to the same period last year. HTC has now conceded its position at the top of the Android foodchain to Samsung. HTC it now only the third largest vendor in the United States, trailing distantly behind both Apple and Samsung.

In the three-month period ending in July, HTC accounted for only 8% of the market, down 0.9% from the three-month period ending in April, according to the most recent data from comScore. Meanwhile, both Apple and Samsung picked up market share; Apple rose 1.2%, to 40.4% of the market, while Samsung went up 2.1% to 24.1%.

The company has also been in a certain amount of turmoil lately, with a huge number of executives feeling the company in May, including its Chief Product Officer, and several others from its marketing and communications divisions.

Then, last month, five of its high-level employees were arrested for stealing companys secrets, which they planned to sell after quitting their jobs.  They included HTC's VP of product design Thomas Chien, R&D director Bill Wu, and design team senior manager Justin Huang.

This is full statement that HTC sent to VatorNews, in which the commpany confirms the layoffs, and also outlines the rationale behind letting so many of its people go:

”Today’s reduction in force is a decisive action by HTC Corp (US) to streamline and optimize our organization and improve efficiencies after several years of aggressive growth.  Realigning its human resources against key strategic initiatives will help HTC more effectively advance into a new stage of growth and innovation. This is a hard decision that has direct impact on people who have contributed to the growth HTC has experienced the past several years.

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 is proud of its employees and has a track record of hiring the best and brightest; we continue to hire in strategic areas and encourage impacted employees to apply for open positions that are a fit for their skills.”

 As a result of this news, shares of HTC fell 4% in trading on Monday.

This news was first reported by The Verge.

(Image source: https://www.norebbo.com)