HTC is cutting 15% of its workforce

Struggling smartphone manufacturer HTC is planning to cut 15% of its global workforce as part of a drive to cut overall costs by 35%, the company announced on Thursday.

The Taiwanese company, once a market leader, is in dire straits. The value of its stock has halved over the last year, and its market value is now less than the cash it has on hand - a sign that investors consider the company effectively worthless.

Since 2011, sales have fallen by more than 75%, and the company faces strong competition at both ends of the market. At the higher end, there's the likes of Samsung (as well as Apple), and there is also a proliferation of cheap-but-powerful Android devices form the likes of Xiaomi and Huawei at the low end.

As such, the company has announced a "business realignment," which will involve a "streamlining of operations" that includes cutting 15% of jobs and reducing operating expenditure by 35%.

In a statement, chairwoman and CEO Cher Wang said that "HTC is an inspirational company driven by innovative people, with a unique blend of expertise in hardware and software integration, advanced technology and world-class design. 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."

The company had previously indicated job cuts were coming. CFO Chialin Chang said last week that "the cuts will be across the board ... they will be significant."