Lenovo, HTC Slash Jobs As Smartphone Market Shifts
Facing pressure and competition in the global smartphone market, Lenovo and HTC each announced layoffs as part of different restructuring plans.The smartphone business is not going very well for manufacturers, even those associated with low-cost handsets.
This week, HTC and Lenovo confirmed they would lay off workers as part of different restructuring plans in the face of slowing handset sales.Earlier this month, Taiwan-based HTC posted a second-quarter loss of $252 million against revenues of just over $1 billion. HTC sells its own smartphones and also makes handsets for a number of leading U.S. companies, including Google’s Nexus One.However, lower sales in China, coupled with competition from the likes of Apple’s iPhone and Samsung, have played havoc with HTC’s plans. Although known for lower-end handsets, the company has tried to branch out into the higher-end market — one that is dominated by the iPhone.With this as the backdrop, HTC announced Thursday that it will cut 15% of its workforce and slash operating expenses by more than a third. This translates to about 2,250 people cut by the end of this year.