Taiwanese smartphone maker HTC announced that the company plans to cut 35% of its operational expenses by laying off 15% of its employees worldwide.

HTC's new operating plan also covers the establishment of new business units. With clearer goals, the company will drive profitable growth in key sectors such as high-end smartphones, virtual reality, and smart life devices.

Cher Wang, chairman and chief executive officer of HTC, said that the company is actively developing diversified areas in addition to smartphones; therefore, they need a flexible and energetic team. The new operating plan will better clarify the goals of various departments and aims to turn the company around.

According to HTC's financial report for the second quarter of 2015, the company's operating revenue was NTD33.01 billion, a decrease of 20% compared with the first quarter; and it suffered post-tax losses of NTD8.03 billion.

In addition, the company predicted that it would continue to make losses in the third quarter.