#HTE

Struggling smartphone maker HTC continues to struggle.

After offloading 2,000 engineers to Google as part of a $1.1 billion deal with the search giant, HTC is now laying off 1,500 staff, or nearly one-quarter of its total headcount, to cut more costs. That’s according to a report from Reuters which claims that the cuts are part of a move manage its resources more efficiently.

“Today HTC announces plan to optimize the manufacturing organizations in Taiwan. This plan will allow more effective and flexible resource management going forward,” HTC said in a statement to Reuters.

HTC representatives did not respond to a request for comment from TechCrunch.

The cuts will be completed before October and they are said to be part of a move to centralize the leadership of HTC’s smartphone and Vive VR business.

The layoffs follow another poor quarter of business for the company. Back in May for its Q1 results, HTC posted a NT$5.2 billion ($170 million) operating loss as revenue dropped by 40 percent year-on-year to reach NT$8.8 billion ($290 million) during the three-month period. That followed a miserable quarter which continued a torrid stretch of poor financial results.