A new HTC Android-based smartphone Sensation
A new HTC Android-based smartphone Sensation is displayed during a news conference for the launch of the product in Taipei May 27, 2011. The mobile phone which was launched on Friday, features a 4.3 inch display screen and is priced at NT20,900 or ($725). REUTERS/Pichi Chuang Reuters/Pichi Chuang

The struggling smartphone maker HTC announced that the company is about to trim 15 percent of its workforce to slash operating expenses. Last week the company reported poor financial results following a declining demand and weak sales which led to the latest restructuring.

On Thursday, HTC revealed its Business Realignment. The company mentioned in the statement that the realignment involves a streamlining of operations which will result in a reduction in operating expenditure by 35 percent. This also includes an expected downsizing of 15 percent of the workforce. That means around 2,250 employees would lose their jobs.

“HTC is an inspirational company driven by innovative people, with a unique blend of expertise in hardware and software integration, advanced technology and world-class design. Now, as we diversify beyond smartphones, we need a flexible and dynamic organization to ensure we can take advantage of all of the exciting opportunities in the connected lifestyle space,” said Cher Wang, Chairwoman and CEO of HTC.

HTC also said that the company will also form new business units to focus on its premium smartphones, virtual reality and connected lifestyle products. Wang further clarified that this strategic realignment will ensure that each product group has got the right focus, resources and expertise to capture new markets.

According to The Wall Street Journal, HTC has served as one of the top Android smartphone maker. But the company has been facing stiff competition from the current market leaders Samsung and Chinese smartphone giants Xiaomi Corp. and Huawei Technologies. This has resulted in the shrinking of HTC’s market share to a considerable extent.

Moreover, Lenovo, the world’s fifth biggest smartphone company will also lay off 3,200 employees following a disappointing last quarter of business. Lenovo confirmed in an announcement that it will reduce overall headcount by five percent. The realignment would focus on restructuring the Mobile Business Group (MBG) to align smartphone development. The company will also consider repositioning the Enterprise Business Group.

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