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  • HTC and Lenovo Cut a Chunk of their Workforce in an Effort to Combat Poor Sales


    HTC and Lenovo, two popular Asian technology manufacturers, have both recently revealed plans to slash their respective workforces and restructure their mobile phone units. The moves stem from financial losses as both companies continue to struggle to compete in the global mobile marketplace. HTC is set to trim 15% of its workforce, though it didnít say from where, while Lenovo will be chopping 3,200 non-manufacturing roles. Both companies are citing streamlining of operations and cost savings as factors driving the decisions.

    HTC CEO Chair Wang said the following in a release regarding the matter:

    Now, as we diversify beyond smartphones, we need a flexible and dynamic organization to ensure we can take advantage of all of the exciting opportunities in the connected lifestyle space. This 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.
    For those of you who didnít already know, HTC has fallen in the last few years as Apple and Samsung have essentially taken over the mobile phone market. As of late, HTC has been trading below the value of its cash on hand, a move which means that investors believe it has no intrinsic value Ė a big sign of trouble for the company.

    As far as Lenovo goes, it didnít specify which unit it will be cutting jobs from but its mobile business group, which now includes Motorola, will undergo restructuring after posting a pre-tax loss of $292 million in Lenovoís first fiscal quarter of 2015. The company appears to be currently sitting on unsold smartphone inventory worth $300 million, which it plans to write off.

    Weíll have to see how this affects the tech industry and more specifically the global smartphone market as a result.

    Source: HTC (Press Release) via Financial Times
    This article was originally published in forum thread: HTC and Lenovo Cut a Chunk of their Workforce in an Effort to Combat Poor Sales started by Akshay Masand View original post