Huawei Is Facing A “Life or Death Crisis” – CEO Lays Out Strategy to Move Forward
Huawei is facing a “life or death crisis” amid continued pressure from the U.S. government, its founder and CEO told employees, as he laid out a strategy for the Chinese telecommunications giant going forward.
In a memo to employees of Huawei’s networking division, Ren Zhengfei described the company’s current scenario as a “battle.” Ren is well-known for utilizing military language in his communications with employees.
In May, the corporate was put on a U.S. blacklist — or the so-called Entity List — which restricts American companies from selling to the Chinese firm. Huawei depends on a lot of American expertise from software to hardware.
However, on Monday, the U.S. administration extended a reprieve for the telecommunications company for 90 days. U.S. businesses can promote specific products to Huawei through the 90 days.
The Huawei boss laid out plans to deliver extra efficiencies to the group. This included simplifying the reporting structure, reducing down on surplus staff, axing repetitive jobs and moving managers to other positions as required.
He additionally urged workers to make sure people pay attention to the standard of the contracts they’re signing with customers to make sure Huawei is paid on time and does not undergo any cash flow issues.
Ren added that Huawei would additionally speed up the purchase of essential equipment to meet clients’ demand.
The Chinese telecommunications agency has been increasingly caught up in the trade war between the U.S. and China.
Consequently, Huawei has been trying to wean itself off reliance on American expertise. The company designs its processors for its smartphones and lately launched an operating system for various devices called Harmony OS.
President Trump has sent mixed signals over the last few months concerning the fate of Huawei in the U.S.