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HTC to cut 600 jobs in Taiwan by end-October (update 2)

2015/08/31 18:13:59

Taipei, Aug. 31 (CNA) Taiwanese smartphone maker HTC Corp. (宏達電) will cut 400 jobs at its Taoyuan factory and 200 jobs at its Xindian plant, located in New Taipei City, by the end of October as part of its efforts to reduce costs, the local governments of the two municipalities confirmed Monday.

The layoff plans were submitted to the Taoyuan and New Taipei governments on Aug. 28. HTC employs nearly 9,000 people at its Taoyuan factory and 2,912 at its Xindian facility, according to local media reports.

HTC declined to comment and reiterated an earlier announcement that the company plans to cut 15 percent of its global workforce, or around 2,300 jobs, as part of a business realignment plan.

The program includes the establishment of new business units to create profitable growth in the company's key areas of premium smartphones, virtual reality and connected lifestyle products, HTC said.

At a press event co-organized by wireless carrier Chunghwa Telecom Co. (中華電信), HTC and software company Trend Micro Inc. (趨勢科技) Monday, HTC North Asia President Jack Tong (董俊良) kept a low profile on the sensitive issue and revealed little about the handset maker's job-cut initiative.

"We're taking steps on the right path. And we will gear up together," Tong said when faced with mounting media inquiries at the press conference.

The actual number of planned job cuts at HTC could be higher, as Chinese media outlets also reported that day that around 500-600 employees have left HTC's Shanghai plant after production there was suspended for nearly a month.

HTC shares ended down 2.23 percent at NT$46.05 (US$1.41) Monday in Taipei.

(By Jeffrey Wu)