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Just as expected, Korean smartphone maker HTC has announced more layoffs, and the cuts are brutal. The company will let go off over 2,000 workers, due in large part to falling revenues and profits. Last week the company reported poor financial results, which it chalked up to worse-than-expect sales of its HTC One M9 flagship. It’s also facing an ever-tightening smartphone market and more competition, especially from Chinese companies like Xiaomi and Huawei. The layoffs are part of a company-wide realignment, and CEO Cher Wang — who took the reigns from Peter Chou early this year.
The CEO said “This strategic realignment of our business will ensure that each product group has the right focus, the right resources and the right expertise”. As we noted before, that focus will include more sub-premium smartphone models, especially in growing markets like India. The company said it will also create growth by focusing on “profitable key areas of premium smartphones, virtual reality and connected lifestyle products.”