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."
A workforce reduction of about 10 percent comes as the Silicon Valley pioneer prepares to split into two separately traded companies later this year.
The Taiwanese smartphone pioneer is dropped from the country's top 50 stock index as its market share and stock price continue to dwindle.
While Samsung devices dominate the global smartphone market, Apple's iPhone continues to rule the US.
"Dozens" of engineers have been dismissed in recent weeks from the secretive lab behind Amazon's consumer hardware, the Wall Street Journal reports.
The company says that it will focus on its games, media, and consumer products divisions and needs to be more "agile" as it looks to improve its financial position.
With so many premium smartphones coming in at an affordable price, can Samsung continue to justify its higher prices?
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.
The company swings to a loss on the weight of layoffs and a writedown of its Nokia handset division.
Job cuts will hit nearly all divisions later this week in the second wave of the company's larger plan to cut 18,000 employees, sources tell ZDNet.