Mobile-phone module maker Wavecom plans to reduce its global headcount by about 30 per cent as it shifts more production to the mainland in an effort to restore profitability. Under an aggressive reorganisation plan, the Nasdaq-listed company will trim 300 jobs in France and the United States, reducing its global headcount to 560 by the middle of the year. Its 120-strong workforce in Asia, which accounts for most of the company's sales, will be left intact. In 2002, the mainland accounted for 72 per cent of sales and its biggest customers included Legend Group and TCL Mobile. Asia-Pacific managing director Didier Dutronc said the staff reductions were not exclusively related to its increasing focus on the China market. But streamlining operations would allow Wavecom to concentrate on its most profitable markets. 'We continue to focus on the Chinese handset market,' Mr Dutronc said, adding the company would increase efforts to capture business from the numerous smaller players on the mainland. Wavecom's modules include mostly all the hardware, software and technology needed to run a mobile phone. Its key business is ready-made digital wireless standard modules, which allow mainland handset makers to shorten product-design cycles. But intense competition has squeezed Wavecom's margins as mainland handset makers cut prices. In the first three quarters of last year, the company derived 65 per cent of sales from the Asia-Pacific region, largely from China. 'The Asia-Pacific region remains a key focus for us, especially for our handset and [xiaolingtong] activities. China and Korea remain our main geographic markets in the region,' Mr Dutronc said. Last month, Wavecom warned it would miss its fourth-quarter revenue target by 19 per cent, following two consecutive quarters of losses. The company lost Euro21.1 million (HK$205.7 million) in the nine months to September. The French company blamed the expected revenue shortfall on foreign-exchange losses, high inventories among distributors, component shortages in Asia and delays at one key customer. Along with the company's reorganisation is a plan to shift production from Europe to China to cut costs and be closer to its key market. Wavecom has been planning the shift since the third quarter of last year. Wavecom said the relocation, expected to cost about Euro10 million, would be completed by the middle of the year.