Smartphone maker HTC Corp. is cutting 15 percent of its workforce and slashing expenses by more than a third to weather a maturing market.
The move comes after the Taiwanese company forecast a net loss for the third quarter on sluggish demand and weak sales in mainland China.
In 2013, HTC dropped out of the top 10 largest handset vendors by shipments after dominating the global smartphone market.
Its market share is less than 2 percent against double digits previously.
The Wall Street Journal is reporting that HTC will cut about 2,250 people by the end of the year, part of a plan to reduce operating expenses by 35 percent.
Also, the company will form new business units to focus on growing its key areas of premium smartphones, virtual reality and connected lifestyle products.
HTC was once a top Android smartphone maker but its market share has shrunk significantly in recent years amid intensifying competition from Samsung Electronics Co. and Chinese smartphone makers including Xiaomi Corp. and Huawei Technologies Co.
Chairwoman Cher Wang, who returned to day-to-day operations last year and who has been doubling as chief executive since late March, had said the company is “moving beyond the smartphone business”.
It recently introduced a fitness band and a virtual reality device.
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