A change of direction for Huawei in order to survive
Line from its founder
Huawei founder Ren Zhengfei has announced a change of direction for China’s tech giant. In an internal email to employees, he said the company must shift from securing scale to securing profits and revenue streams as the economy enters a long recession.
With survival as the primary goal, marginal businesses will shrink and close, and the effects will be felt by all. We must be clear that the creation of ICT infrastructure (information and communication technology) is the historical mission of Huawei and no matter how difficult the times are, we cannot hesitate.
Huawei did not comment further and was content to say that the email was intended for company employees.
Sources say that Huawei will completely leave some countries, while next year it will reduce its ” blind ” investments and its expansion, in order to maintain a stable business pace. China’s Yicai news agency reported that Ren also said that ” the global economy will continue to weaken in the next decade, while the war, the ongoing blockade by the US and the pandemic, leave no window of hope in the next three to five years” .
Huawei’s financials for the first half of the year saw a 52% drop in profits. Ren cited cloud computing, digital energy and smart cars as areas the company should focus on, while admitting that any forecast for Huawei is uncertain beyond two years.
