That follows a plan Cher Wang (pictured), CEO of HTC, announced last month.
She plans to slash as much as 15 percent of its staff worldwide, as part of a drastic restructuring at the company caused by lack of profits.
HTC, once a bright star in the smartphone firmament, has faced stiff competition from Apple and Samsung in recent years.
Local newspaper the Taipei Times said that the layoffs will affect five percent of 9,000 people that work at the factory.
HTC has vowed to turn the company round by focusing on making and selling top end smartphones and “lifestyle” products.
Separately, rival Samsung announced a revamped “smart” watch yesterday in a bid to grab some market share from leading wearables firm Apple.