HTC made a compromise on its layoff plan by cutting only 40 employees from its R&D and design center in Hsintien and the company said no further large-scale employee layoffs would occur.

According to reports in Taiwanese local media, HTC announced plans to cut 400 employees from its Taoyuan plant and 200 employees from New Taipei plant, which led to the protest of the general labor union and employees. HTC was accused of illegal layoffs, because the company started dismissing employees before submitting its layoff plan to Taiwan's labor regulation department.

After government coordination, HTC then announced to first cut 40 employees from its Hsintien R&D and design center, covering managers, deputy managers, senior specialists, and engineers. At present, HTC Hsintien R&D and design center has 2,912 employees.

The labor regulation department of New Taipei revealed that HTC promised that they would not implement large-scale layoff after cutting the 40 employees; and the department will continue to track the follow-up.