Techfaith Undergoing Staff Reduction

SHENZHEN, Jul 23, 2008 (SinoCast via COMTEX) -- CNTF | Quote | Chart | News | PowerRating -- Techfaith (NASDAQ: CNTF), a cell phone design company based in China, has reportedly cut off 70% of its manpower, merely maintaining the 300-staff 3G department. Even positions of CTO and CFO have been dismissed.

Such move, Li Zhibo, president and CEO of Techfaith says, was aimed at controlling the costs. However, the president confirmed that the staff reduction was not that huge as reported.

During the past few years, Techfaith has been facing throat-cutting competition from its rivals, while its sales have been on the decline. It has decreased its employees from 2,600 to 1,300.

Industry analysts point out that as Mediatek opened its cell phone design platform, an increasing number of newcomers flock into the handset design sector. But, they are lack of diversified business models and have been depending overly on price wars.

With completion of the reduction, Techfaith will shift its focus to 3G cell phones, smartphones, and data cards.

From www.enet.com.cn, Page 1, Tuesday, July 22, 2008 info@SinoCast.Com

More News:   Market Updates | Stock Alerts | All Trading News | Stock Index