The company says that it will cut 15 percent of its staff as it refocuses its business on "premium smartphones, virtual reality, and connected lifestyle products."
Its flagship phone, the One M9, has not caught on, and HTC says it will continue to invest in other areas, including virtual reality, as it looks to turn itself around.
HTC issues a statement to shareholders on Monday, saying it won't even consider being acquired by Asus.
Jonah Becker, former chief designer for HTC, has taken a new job designing products for Fitbit, where he'll still be competing with Apple and Samsung with wearable fitness products.
Jonah Becker, who oversaw the development of the newly released HTC One M9 smartphone, is the second head of design to leave the company in less than a year.
The chipmaker won't contest the record fine as part of the resolution, and agrees to make several changes to its patent-licensing business in China.
The new rules would prohibit speeding up, slowing down or blocking broadband Internet traffic, under regulations that date back to the early days of the telephone business.
Health care professionals interviewed by Reuters want to see more from Apple's new smartwatch before giving its health features a thumbs-up.
HTC's Jonah Becker shows off new features for the HTC One M8, including BlinkFeed, a magazine-like news aggregator; a more powerful TV remote control; and redesigned audio.
HTC's Jonah Becker shows off the company's new photo and video features at a press event in New York City. The new camera sports two lenses on the back to help users create more 3D-like images, while the video camera lets users edit their videos inside the camera.