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Razer lays off most of its mobile division staff, cancels Razer Phone 3

Razer lays off most of its mobile division staff, cancels Razer Phone 3
UPDATE: Razer has contacted us with another statement, which, once again, confirms that some of the mobile division's staff has been laid off. In addition, the company says it will continue to support the Razer Phone 2, which will receive the highly-anticipated Android 9 Pie update in less than a week. You can read everything below:

Truth be told, we're not sure what Razer would have expected from a niche product like the Razer Phone. Advertised as a gaming phone, the top-tier device faced fierce competition from flagships coming from major smartphone companies. 

Apparently, the Razer Phone and its sequel didn't sell that well, which forced the company to take action. Instead of announcing its third smartphone, Razer has decided to lay off most of its mobile device and hardware engineer staff last week, Droid-life reports.

According to a tip, the Razer Phone 3 has been canceled as well and those remaining will be moved to different parts of the company. An official statement from Razer confirms 2% of its total workforce (30 people) were laid off as part of the company's reorganization.

Although it's hard to tell from the statement that the people laid off were part of the mobile division, it wouldn't be surprising for Razer to cut its losses. Making smartphones is expensive, but making flagships is even more expensive, so if you don't manage to sell them to cover your costs, you're going to lose quite a lot of money.

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