Shares for beleaguered Taiwanese smartphone company HTC fell 3.6 percent in early Monday trading on the back of an announcement to cut 20 percent of its US staff.
The company has forecast an operating loss from the quarter and its executives have been dropping like flies. Three senior execs were in hot water, suspected of leaking company secrets, while its August revenue plunged to a six month low.
In fact, some analysts expect HTC is headed for its first full year loss, the WSJ reports.
This is despite relative success in the smartphone space with the HTC One. Its phones are usually well received but this has not yet turned around its fortune. The company sits behind Apple and Samsung in smartphone market share,with a recent slip in the US market.
HTC said the announcement is a “decisive action to streamline and optimise our organisation and improve efficiencies after several years of aggressive growth”.
Sacking staff, the company hopes, will give HTC the boost it needs.
“This is a hard decision that has direct impact on people who have contributed to the growth HTC has experienced the past several years,” HTC said in a statement.
“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”.