HTC Corporation has announced a plan to realign its business that will enable it to position itself for a significant profitable growth, according to a press release issued by HTC.
The realignment will make HTC leaner and a more agile operating model.
HTC will be establishing new business units as part of the realignment, according to the press release.
The new business unit will serve to create greater focus and profitable growth in the company's key areas.
HTC is aiming for the new business unit to improve its premium smartphones, virtual reality and connected lifestyle products, according to the press release.
"This strategic realignment of our business will ensure that each product group has the right focus, the right resources and the right expertise to win new markets," Cher Wang, chairwoman and CEO of HTC, said in the press release.
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," she said.
In addition to creating new business units, the company will also be reducing operating expenditures by 35 percent, according to the press release.
The reduction will include slashing 15 percent of its workforce.
Bloomberg adds that the number of jobs to be reduced is around 2,300, out of the 15,685 staff it currently employs. The reduction is due to the plunge of HTC's shares that renders its brand, factories and building worthless.
Bloomberg adds that the company's share prices have dropped by 20 percent this week, putting HTC's market value at "below cash on hand."
The company has been facing intense competition from Chinese smartphone makers Huawei Technologies Co. and Xiaomi Corp.
The Financial Times added that in 2011, HTC was the leading producer of phones that is using Google's Android operating system. However, the costly production of its high-end phones was unable to keep up with market leaders, Samsung and Apple.
The Financial Times adds that HTC is now struggling to set itself apart from other Asian smartphone makers using Android as its operating system.
