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HTC plans to lay off 600 employees in Taiwan
Taoyuan mayor Cheng Wen-tsan confirmed yesterday that HTC Corp
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aoyuan mayor Cheng Wen-tsan confirmed yesterday that HTC Corp. will lay off 400 people in Taoyuan and that his government will assist HTC workers find new jobs in the high-tech sector.
The New Taipei city government also announced yesterday that it had received a notification from HTC about discharging 200 workers by the end of October at its Xindian facility.
Cheng said HTC had tendered its layoff plan to the Taoyuan government under the Labour Standards Act, and layoffs are expected to be completed before the end of October.
Cheng said his government has deployed an employment project tasked to refer HTC employees for new jobs.
HTC has hard-working and proficient workers, and hopefully they can land new jobs without an interruption through the help of the two-month referral plan, Cheng added.
The underperforming HTC logged a NT$15 (46 US cents) loss per share in the first three quarters, and as the company struggles to stay afloat and restructure, it announced a downsizing plan to cut its global labor force by 15 per cent before the end of the year, reducing operations expenses by 35 per cent.
There are market rumours that the layoff will centre on the R&D department and production lines in Taiwan, amounting to more than 1,300 and about half of the planned labour reduction. HTC declined to comment on the report.
HTC workers left posts in Shanghai
News surfaced in late August that HTC would sell off two manufacturing facilities in Shanghai.
Whether the smartphone maker is seeking new bases in Southeast Asia has drawn market attention. HTC is looking for new partners in Indonesia, according to Southeast Asian media.
HTC clarified on Monday it has no plans to establish new production facilities in Indonesia, but the company considers Indonesia an important market and will strive to provide the best experience for local consumers.
A source in China confirmed HTC's facilities in Shanghai have been closed for a month and that 500-600 people, mostly production line personnel, left their posts by the end of August.
About 20-30 floor supervisors remained on the roster. There are no changes in the company's R&D department and after-sales services, said the source.
In response, HTC said yesterday the company's facilities are still running in both Taiwan and mainland China.
Responding to the media at a press event yesterday, HTC North Asia president Jack Tong would not comment on the plant closure or workforce reduction, but said that the company is working very hard and is "on the right track."
Tong had said earlier that HTC plans to introduce mid- and high-end phones in the fourth quarter. The company's high-end products priced NT$20,000 and up will be attractive, he said. (++++)
