HTC Corp. de­nies spec­u­lat­ing about cut­ting its work­force

The China Post - - BUSINESS -

Tai­wanese smart­phone ven­dor HTC Corp. ( ) de­nied on Fri­day a re­port say­ing that it will re­duce its work­force to cut costs in the face of mount­ing losses amid fiercer-than-ever com­pe­ti­tion.

Though it de­nied it would lay off em­ploy­ees, HTC said in a state­ment that it is “fo­cused on en­hanc­ing the brand and im­prov­ing the busi­ness through a com­bi­na­tion of com­pa­ny­wide ini­tia­tives that in­clude in- creas­ing op­er­at­ing ac­count­abil­ity.”

The de­nial came af­ter Reuters re­ported on Thurs­day that HTC will cut jobs and dis­con­tinue mod­els as part of its ef­forts to fo­cus on high­end de­vices and take on Ap­ple Inc. and Sam­sung Elec­tron­ics Co.

As for the re­port about the move to dis­con­tinue mod­els, an HTC spokes­woman told CNA that it is not un­usual for a com­pany like HTC to stop pro­duc­tion of old mod­els.

ef­fi­ciency and

HTC said it will con­cen­trate on cut­ting op­er­at­ing costs af­ter in­cur­ring a loss per share of NT$9.27 in the first six months of this year, but it of­fered few specifics.

The cost re­duc­tion ef­forts “will in­clude strate­gic cuts in cer­tain ar­eas of the busi­ness, in­creas­ing in­vest­ment in growth ar­eas of the busi­ness what will de­liver re­turn on in­vest­ment and share­holder value,” the com­pany said.

At an in­vestor con­fer­ence on Thurs­day, HTC forecast a loss per share be­tween NT$5.51 and NT$5.85 for the third quar­ter, cit­ing a prod­uct tran­si­tion pe­riod as the cause.

The gloomy third quar­ter forecast led sev­eral for­eign bro­ker­ages to cut their tar­get prices to as low as NT$45 and rec­om­mend that in­vestors cut their hold­ings in HTC shares.

Amid con­cerns over the smart­phone brand’s out­look, heavy selling emerged in HTC shares soon af­ter the lo­cal main board opened.

As of 12:13 p.m., shares of HTC had lost 10 per­cent, the max­i­mum daily de­cline, to NT$63.00.

On Thurs­day, HTC Chair­woman Cher Wang ( ) re­signed as the chair­man of HTC’s af­fil­i­ate chip­maker VIA Tech­nolo­gies Inc. (

), though she will re­main on the com­pany’s board.

HTC said Wang will de­vote all of her time to the com­pany and to im­prov­ing its oper­a­tions.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.