Surviving the next 3 years is the priority for Huawei, says founder

Surviving the next 3 years is the priority for Huawei, says founder

Shanghai (China), Aug 24 – The main objective of the Chinese technology company Huawei must be survival for the next three years in the face of the prospects of a global economic recession, assured the company’s founder, Ren Zhengfei.

In an article published on the firm’s intranet and later quoted by the economic news portal Yicai, the executive called for “switching to survival mode in 2023 or even until 2025.”

To do this, Ren called for a change in focus in corporate strategy, from focusing on the scalability of sales to focus on profit and cash flow.

The founder of Huawei advanced that the company will reduce or even close non-priority lines of business and that it will reduce jobs at its headquarters in Shenzhen, in southeastern China.

“It is still uncertain whether we will be able to take a step forward during this period. … We must get rid of all illusions, especially when it comes to business forecasts,” he added.

In recent years, Huawei has been affected by the restrictions imposed by the US government – which considers it a danger to national security due to alleged links to Chinese intelligence – and by the impact of the covid-19 pandemic.

In 2021, turnover fell by 28.5% compared to the previous year.

Melissa Galbraith
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.