According to multiple reports, HTC has paused production on roughly a fifth of its total capacity and has been looking to outsource to contract manufacturers to save money. (Update: The company tells Engadget that it hasn't shut down any of its manufacturing lines) Reuters says that it has seen parts of HTC's factories closed up, and reports that cash flow pressures have forced the smartphone maker to make serious changes -- the company reported its first net loss back in October, a total of $101.2 million. HTC's Chief Marketing Officer Ben Ho told the news service that, "Like any manufacturer, we do volume planning to optimize our lines, our manufacturing and production facilities." At the same time, the WSJ reports that HTC has apparently met with several manufacturers with a view to moving production away from in-house. If there's any positive angle here, perhaps it's all part of HTC's grand plan to ready itself for those new wearables and tablets it's apparently planning.

Update: HTC's followed up on its CMO's comments, adding that it has no plans to sell off any of its production assets:

"HTC is not shutting down nor does it have plans to sell any of its factory assets. HTC has a very strong balance sheet and will provide the latest financials in our upcoming earnings call to investors and the broader community."

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HTC reportedly scales back production after slump in smartphone sales (update: HTC says it hasn't)