The Verge has learned that HTC has laid off about a fifth of its America division. It seems affected employees were informed yesterday, with the cuts affecting multiple departments. The Verge says the company has confirmed that layoffs have taken place, but would not offer more detail.
The Verge has also managed to get a hold of a letter to employees from Jason Mackenzie, the president of HTC America. He is quoted as calling this the “the most difficult day” of his career. He said that this measures are part of a broader plan to “simplify our organisation” and “sharpen our teams focus”. The full statement is included below.
Today’s reduction in force is a decisive action by HTC Corp (US) to streamline and optimize our organization and improve efficiencies after several years of aggressive growth. Realigning its human resources against key strategic initiatives will help HTC more effectively advance into a new stage of growth and innovation. This is a hard decision that has direct impact on people who have contributed to the growth HTC has experienced the past several years. However, to achieve our long-term goals as a business and return maximum value to our shareholders, this is a necessary step to drive ongoing innovation, ensure our ability to create strong products like the HTC One, and forge strong customer relationships that solidify our future. HTC is proud of its employees and has a track record of hiring the best and brightest; we continue to hire in strategic areas and encourage impacted employees to apply for open positions that are a fit for their skills.
The layoffs comes only weeks after a full reorganisation of the US division, as the company continues to struggle to maintain marketshare and profitability.
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