HTC has struggled to regain its foothold in the world of Android over the past few years. They have simply not been able to compete with the dominant force that Samsung has become in the same timespan. As a result, the company announced this morning that they will be terminating the assignment of 1,500 employees in their Taiwan manufacturing division.
This comes as another blow to their workforce after multiple recent maneuvers. Google absorbed much of its mobile division late last year to help build the next generation of Pixels. This was soon followed by their US offices releasing another 100 workers. Each was meant to signal a decrease in the footprint that would lead to more profits.
Today’s move was surrounded by similar motivations. HTC’s move to ax this new wave of employees will result in a 22% decrease in labor costs. While this is another short-term band-aid, one has to wonder just how much longer HTC can hold on in its current state. Their last two flagships, the U11 and U12+, have been met with less than stellar sales.
It only seems to be a matter of time and a worthy offer away before HTC falls. But who would be the likely suitors? Google has already made a play for assets from HTC before, and if they continue to grow the Pixel lineup, HTC’s entire portfolio could start to look appealing. Or could another behemoth like Amazon see potential in making another run at mobile with resources that could be provided by a takeover of HTC? With many alternative futures at play, this is definitely a story we’ll be keeping a watchful eye on.