HTC has announced that it will reduce its operating costs by 35% and its global workforce by 15% by implementing a restructuring plan to sustain revenues and profit growth with a leaner and more flexible business model.

The layoff plan will affect about 2,250 jobs at HTC based on a total of over 15,000 employees the company has as of the end of July.

Under the restructuring plan, the company will create new business units to focus on its major areas of premium smartphones, virtual reality (VR) devices and smart connected products, the company said.

Since HTC has diversified beyond smartphones, the company needs a flexible and dynamic team able to grasp the emerging opportunities and related advantages in the smart connected lifestyle space, according to chairperson and CEO Cher Wang.

The realignment comes after the company forecast recently that it is likely to post a loss of NT$5.51-5.85 per share (US$0.17-0.18) for the third quarter of 2015 following a loss of NT$9.70 per share in the previous quarter.

HTC shipped about 5.4 million smartphones in the second quarter of 2015, down from the 6.8 million units shipped in a year earlier period, according to a Chinese-language Liberty Times report, citing sources from international securities investment houses.