HTC has been forced to make harsh cuts across its business following its worst quarterly loss ever.
In the three months leading up to June, the company lost £163 million, leaving the HTC One M9 maker with little choice but to scale back.
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As a result, the company is planning to "implement company-wide efficiency measures to reduce operating costs", hitting jobs and the number of smartphones it produces each year.
In a statement, HTC blamed "weaker than expected demand at the high end" and "weak sales in China" for its year on year fall.
However, the firm says it will continue to invest in new product areas such as virtual reality.
Its own HTC Vive virtual reality headset is due for release at the end of the year.
