HTC and Lenovo Cut Jobs by Thousands as Profits Sink
After seeing a visible fall in their market shares and resultant drop in revenue, HTC and Lenovo have announced that they will be cutting a considerable number of jobs.
While Lenovo is letting go of 3200 employees while HTC will also cut 2300 jobs. The greater number of jobs being cut by Lenovo could possibly be because they have lost as much as 50 percent of their profits.
Amidst the expected negativism, Cher Wang, the Chairwoman and chief executive officer at HTC has tried to pull an optimistic take on the job cuts terming the changes as a way to refocus on each of their products. Read up on what she had to say:
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. 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.
As far as Lenovo is concerned, the first quarter profits of the Chinese company were reduced to $105m while revenues were almost unchanged at $10.7bn (only three percent increase which was way below the forecast).
None of these were unexpected but we will wait to hear more about the future plans of both HTC and Lenovo.