United News International (UNI)- Taiwan-based smartphone company HTC is set to lay off nearly 1,500 manufacturing jobs in an attempt to downsize.
The layoffs amount to nearly a quarter of the company’s overall staff, making this it’s biggest staff cut in three years.
HTC has seen major losses in market value in recent years as a result of major competition from Samsung and Apple.
HTC also joined the virtual reality world to keep up with Facebook and Samsung, but analysts are skeptical of its earning potential.
In a statement to Reuters, the company said, “This plan will allow more effective and flexible resource management going forward.”
The layoffs are set to be complete by October following a deal with Google in which Google paid $1.1 billion to acquire part of HTC’s design division.
According to The Verge, 2,000 of HTC’s engineers will move over to Google as part of the deal.