With the global economy getting into a prolonged period of recession, the founder of China's embattled tech giant Huawei Technologies has informed the company employees that the firm's focus should change from pushing for scale to ensuring making and increasing profits and cash flow, according to media reports on Tuesday.
"With survival as the main principle, marginal businesses will shrink and close, and everyone will feel the chill," founder Ren Zhengfei wrote in an email to staff on Monday, according to the financial news outlet Yicai.
Huawei stated that the email was intended for employees only and declined to comment further.
Yicai did not elaborate on whether Ren explained which businesses were "marginal," only that "surplus personnel" would be transferred to reserve teams.
Ren also emphasised the significance of the company's traditional emphasis on information and communications technology (ICT).
"We must be clear that building ICT infrastructure is Huawei's historical mission, and the more difficult the times are, the more we cannot waver," he said.
According to the report, Huawei will indeed "give up completely" in some undisclosed nations, while the following year it would decrease "blind" investment and growth and keep a suitable business tempo.
According to Ren, the global economy will continue to slide over the next decade, whilst also war, the US's "continued blockade," and the COVID-19 pandemic will end up leaving "no bright spot in the world" in the next three to five decades.
In 2019, the United States placed Huawei on an export blacklist, preventing it from accessing critical technology of US origin, limiting its capacity to design and create chips and source components from third-party vendors. The US claims Huawei is a security risk, which the company denies.
According to reports, the profits of the company for the first-half of the year dropped by 52 per cent to 15.08 billion yuan, primarily because of a weakening economy, the pandemic disruptions, and issues with the global supply chain that his impacting the company's device business, which sells smartphones and laptops.
According to reports, Ren noted the firm's cloud computing, digital energy, and smart car businesses as areas in which the firm should see growth.
Ren stated that the company's future was uncertain beyond the next few years.
(Source:www.businesstimes.com.sg)
"With survival as the main principle, marginal businesses will shrink and close, and everyone will feel the chill," founder Ren Zhengfei wrote in an email to staff on Monday, according to the financial news outlet Yicai.
Huawei stated that the email was intended for employees only and declined to comment further.
Yicai did not elaborate on whether Ren explained which businesses were "marginal," only that "surplus personnel" would be transferred to reserve teams.
Ren also emphasised the significance of the company's traditional emphasis on information and communications technology (ICT).
"We must be clear that building ICT infrastructure is Huawei's historical mission, and the more difficult the times are, the more we cannot waver," he said.
According to the report, Huawei will indeed "give up completely" in some undisclosed nations, while the following year it would decrease "blind" investment and growth and keep a suitable business tempo.
According to Ren, the global economy will continue to slide over the next decade, whilst also war, the US's "continued blockade," and the COVID-19 pandemic will end up leaving "no bright spot in the world" in the next three to five decades.
In 2019, the United States placed Huawei on an export blacklist, preventing it from accessing critical technology of US origin, limiting its capacity to design and create chips and source components from third-party vendors. The US claims Huawei is a security risk, which the company denies.
According to reports, the profits of the company for the first-half of the year dropped by 52 per cent to 15.08 billion yuan, primarily because of a weakening economy, the pandemic disruptions, and issues with the global supply chain that his impacting the company's device business, which sells smartphones and laptops.
According to reports, Ren noted the firm's cloud computing, digital energy, and smart car businesses as areas in which the firm should see growth.
Ren stated that the company's future was uncertain beyond the next few years.
(Source:www.businesstimes.com.sg)
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