HTC lays off 20% of its staff in a struggle to “streamline and optimize” the company

HTC has always been welcoming bad news with arms wide open. It was not long after the rivals like Samsung, Google (and the rest) took their postions that HTC’s American division started feeling itself at a vulnerable state.

As reported to TheVerge, HTC laid off 30 of its employees and cotractors from its Americann division. This makes 20% of their staff which in total was around 150 (counting the employees and the contractors) in number. It has been observed that these layoffs have affected multiple departments. The exact numbers and the departments,however, remain unknown. According to the reports summed up after the official statement of HTC Americann division, the layoffs are a strategic act toward the optimization of the organization.

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Even when the profits and sales didn’t go as high as expeted and HTC could not hold a significant market share- it has either remained where it was or in some cases has declined, the layoffs don’t promise a streamlined organization to the HTC Americann division, or do they? They would rather leave the organization in a more unstable state than it today is.

Despite the fact that HTC’s flagship HTC One recieved a verypositive reception, HTC has actually seen its profits decline. This explains how hard it has been for HTC to turn itself around. Before this round of  layoffs, the organization had already been facing departures from its high-profile employees. Many believe that the quick decision making traits of CEO Peter Chou have been beneficial for quite a long time, but now had started to prove as a weakness to the company.

The letter Jason Mackenzie wrote to the team promised that the company will always have a great deal of respect for the laid off employees and that the company will be helping them find a career for them in the future. Jason Mackenzie also mentioned that it was “the most difficult day of my HTC career” and explained that the layoffs were a part of a broader plan aiming to simplify the organization, sharpen their teams focus, improve the speed in decision-making, and drive greater empowerment through their team, while reducing their overall cost structure.

HTC’s official statement is rather long and is quoted below:

“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.”

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