Manufacturer to also streamline smartphone portfolio to concentrate on the high-end following loss of £163 million and near 50 per cent fall in revenue
HTC is to make “significant” job cuts and discontinue smartphone models after reporting a Q2 loss of NT$8 billion (£163 million).
Following the publication of the results, HTC chief financial officer Chialin Chang told reporters: “The cuts will be across the board. They will be significant.”
Chang also confirmed it will be discontinuing models as part of its strategy to focus on high-end devices, adding the cost reductions would extend into Q1 2016, but declined to give further details.
The news comes after HTC reported its financial results for the three months ending June 30, with the loss it made comparing to a profit of NT$0.36 billion (7.3 million) last quarter and NT$2.3 billion (£47 million) a year ago.
Revenue for Q2 almost halved compared from the same quarter last year to NT$33 billion (£672 million) and was down sequentially from NT$41.5 billion (£846 million).
HTC attributed the disappointing results to weaker than expected demand at the high end, consistent with the current Android market, along with weak sales in China.
Its shares also fell 10 per cent to NT$63 (£1.28) in Taipei this morning, closing at their lowest in more than a decade.
The manufacturer also provided a bleak outlook for Q3, forecasting revenue to more than halve to between NT$19-22 billion (£387 million-£448 million).
However, HTC chairwoman and CEO Cher Wang remained upbeat on the company’s strategy and is confident it will deliver against its ambitions.
“While the current market climate is challenging, I firmly believe the measures we are putting in place to streamline our operations, improve efficiency and focus, and increase our momentum will start to show results over the coming quarters.
“I am confident that our smartphone phone and connected devices strategy is the right one for HTC, and our corporate initiatives will ensure that we deliver on both our vision and business goals.”