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Layoff rumours hit Huawei over US ban

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The US government put China’s Huawei Technologies on a trade blacklist last week, prompting fears the Chinese telecom giant would axe thousands of workers.

On Tuesday, according to New Tang Dynasty, Ren Zhengfei, CEO of Huawei, confirmed he had started the layoffs due to external circumstances, while many Huawei employees were resigning as well.

However, Huawei reached out to Human Resources today (28 May) and stated Huawei has no plan to axe its employees, and the business carries on as usual.

This is an excerpt of Ren Zhengfei’s official statement to the media:

“The number of former Huawei employees exceeds the number of current employees. How did they end up leaving Huawei? Some of them left of their own will. If some business fails, it is the commander’s liability, not the employee’s. When we remove a department, we should find a way for its employees who have developed many skills as they grow.”

On 15 May 2019, Huawei was added to the US Department of Commerce’s Bureau of Industry and Security Entity List, banning Huawei from US communications networks. US president Donald Trump described Huawei as a risk to national security. Four days after the blacklist, Google suspended the transfer of hardware, software and technical services to Huawei.

Source: Initium & Huawei
Photo/ Forbes

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