Sign up for our Technology Newsletter 
Sprint Confirms Jobs To Be Cut
November 17, 2015 by admin
Filed under Around The Net
Comments Off on Sprint Confirms Jobs To Be Cut
Sprint Chairman and SoftBank CEO Masayoshi Son has confirmed that job cuts at Sprint will be “in the thousands” as part of a restructuring plan.
His comments came as SoftBank, which owns more than 70% of Sprint, reported its quarterly earnings.
“Sprint is now in the position to increase the pace of user acquisition while cutting costs,” Son said, according to Bloomberg and other news sources. “We will also cut staff. The cuts will be in the thousands.”
Son’s comments are not out of line with things Sprint CEO Marcelo Claure has been telling Sprint workers for months.
On Tuesday, Sprint’s stock price sagged downward after an earnings report included a statement saying that the carrier plans to cut $2 billion or more in operating expenses for its 2016 fiscal year, which begins in April.
Son also said the $2 billion is a “minimum target” and should be the amount slashed annually, according to a report by The Wall Street Journal. The company now has more than $25 billion in annual costs.
Sprint has been investing in attracting new customers — an effort that has been costly but effective. On Tuesday, Sprint reported it gained 237,000 postpaid phone customers in its second fiscal quarter, which ended Sept. 30. It was the first time the company had showed gains on that measure in two years. It also reported its lowest customer cancellation rate in company history.
In November 2014, Sprint had said it would cut 2,000 jobs as part of $1.5 billion in cost reductions. That announcement came after Sprint had cut 5,000 jobs from January through September 2014. The company had 31,000 workers at the start of its current fiscal year on April 1.
Source- http://www.thegurureview.net/mobile-category/sprint-confirms-thousands-of-jobs-to-be-cut.html
HTC To Go High-End
August 18, 2015 by admin
Filed under Smartphones
Comments Off on HTC To Go High-End
Taiwanese smartphone maker HTC Corp said it will eliminate some jobs and discontinue models as part of its strategy to focus on high-end devices to better compete with the likes of AppleInc and Samsung Electronics.
“The cuts will be across the board,” Chief Financial Officer Chialin Chang told reporters after HTC reported a second-quarter loss and forecast another for the third-quarter. “They will be significant.”
Chang said the cost reductions would extend to the first quarter of next year, but declined to give further details.
A pioneer in early smartphones, HTC has been dismissed by industry watchers as confused, unoriginal and uncompetitive.
The company has been losing market share over the past few years, hit by intense competition at the high-end of the market from the likes of Apple and Samsung Electronics while budget Chinese rivals have also eclipsed its low-cost offerings.
HTC shares have fallen 51 percent so far this year. The stock closed 1.69 percent lower before the results were announced.
Chang said HTC was banking on selling high-end models in emerging smartphone markets such as India, where he said the company has a 20 percent market share of phones priced between $250-$400.
Analysts, however, are less optimistic, saying HTC is likely to continue to struggle for the next four quarters at least.
“We believe HTC will keep losing share in the smartphone market and will keep losing money,” analyst Calvin Huang with Taiwan’s SinoPac Securities wrote in a recent research note.
HTC Cutting US Jobs
September 25, 2013 by admin
Filed under Around The Net
Comments Off on HTC Cutting US Jobs
In another sign of trouble at HTC, the Taiwan-based mobile device maker began downsizing its U.S. operations on Friday, eliminating an undisclosed number of staff.
The move is meant to “streamline and optimize” the company’s U.S. organization “after several years of aggressive growth,” HTC said in a Monday email. A company spokeswoman declined to specify how many employees would be affected.
“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,” the company said.
HTC has been facing a difficult year on weak earnings that have sent its stock price tumbling. In the second quarter, its net profit plummeted 83 percent year-over-year, despite strong reviews for its flagship smartphone, the HTC One.
The weak financials are major change from only a couple years ago when HTC was riding high selling Android smartphones in the U.S. But starting in late 2011, the company’s net profit has sagged on increased competition from Samsung and Apple.
To recover, HTC has focused on building up its “One” smartphone brand. In addition, the company has expanded its China presence, and in August launched a new marketing campaign that’s enlisted Hollywood actor Robert Downey Jr.
While the company has largely focused selling high-end handsets, in July HTC said it was planning on selling more mid-tier and entry level phones to regain market share. The new phones will launch at end of the third quarter or early fourth quarter.
But the company’s troubles go beyond issues with smartphone sales and marketing. In September, Taiwanese authorities arrested three HTC employees for allegedly stealing company secrets. One of the employees arrested was Thomas Chien, HTC’s vice president of product design.
HTC has declined to offer further details on the case.
RIM Cuts 11% Of Workforce
July 31, 2011 by admin
Filed under Smartphones
Comments Off on RIM Cuts 11% Of Workforce
BlackBerry maker Research In Motion Ltd plans to slash approximately 11 percent of its workforce to curb costs as it struggles to compete against Apple Inc and Google Inc.
The announcement of 2,000 job cuts on Monday came a month after the Canadian company acknowledged that it would reduce headcount for the first time in a decade.
One analyst said the job cuts were slightly deeper than expected but were key to RIM’s recovery from a slump triggered by product delays and intense competition from Apple’s iPad and iPhone as well as devices powered by Google’s Android software.
RIM’s U.S.-listed stock, already near multi-year lows, was down as much as 2 percent before the market opened. It was trading down 1.8 percent at $27.40 on the Nasdaq
just before the open.
“This is not totally unexpected. I think the size of (the cuts) is a little bit bigger than what they were intimating before,” said Jefferies & Co analyst Peter Misek. “I think this is obviously realigning the cost structure to a new growth, or sales, reality.”
RIM said one-time charges from the job cuts were not included in its outlook for the second quarter or for the full year, and it would explain the financial impact of the cuts when it reports second quarter results on September 15.