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Report: HTC selling off major smartphone factory to save money

It’s dark times over at HTC HQ, and serious cut-backs are in the works across the entire company.

As a result, HTC is now set to sell off a major smartphone factory to recoup some much-needed capital.

Based in Shanghai, the factory will be sold to an undisclosed Chinese manufacturer.

It’s a huge complex according to NextMagazine (via GSMDome), which reports an overall working area of 146,667 square metres.

Allegedly, the deal is almost complete, which means HTC will shortly be flush with funds.

That cash may come in handy when it comes to peddling its next smartphone, newly rumoured to be called the HTC O2 – not the HTC One M10.

This isn’t the only cut-back HTC is making. The company has also confirmed that it will be slashing its workforce by 15 per cent.

What’s more, it also has plans to reduce the number of smartphones it makes.

Don’t forget that HTC may have a saving grace in the works in the form of its upcoming HTC Vive virtual-reality headset.

Fortunately, the company is developing the headset in partnership with gaming company Valve. The release date is set for 2015’s holiday season.

SEE ALSO: Best Android Smartphones 2015

Earlier this month, HTC posted its biggest ever quarterly loss of £163 million – that’s in the three months leading up to June.

This was largely a result of the lukewarm reception to the company’s latest flagship smartphone, the HTC One M9.

Only last week, the company’s stock was trading at below cash-on-hand reserve value, which effectively meant investors deemed the company’s brand, factories and buildings as worthless.

What can HTC do to redeem itself? Let us know in the comments.

Check out our smartphone group test video below:

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