Huawei has confirmed that there are redundancies in its enterprise division and it’s moving to slash its portfolio. The company is now eliminating several Enterprise product lines from the U.K., after a business review, citing the relentless Trump administration’s actions, which have been damaging to the business.
The Chinese giant said that it has communicated to its channel partners and clients that they are slashing a number of product lines affecting networking switches, servers, and storage gear.
A Huawei spokesperson sent a statement about the country-specific portfolio, with rationalizations and other redundancies. They want to deliver fewer products in a better way. Several roles are no longer required but they hope to reposition the affected colleagues in other posts within the businesses.
The discontinuation will happen by the end of 2020
Out of the 50 members of the Enterprise team, about 20 are going to be impacted by this move. The spokesperson added that they would continue to provide full service and maintenance to the existing customer base for the life-cycle remaining on their products.
Huawei did not confirm which specific lines have been discontinued.
The reasoning behind this refusal to disclose was cited as commercial confidentiality. According to some sources, they have discontinued server, storage, and networking lines. The current plan from now on is to stop those sales from the end of this year.
Crippling actions have not helped
Huawei first started their Enterprise business in the U.K. in 2011. It had problems making progress in the first few years. However, according to some sources, its operations have been growing, and its number of wins increased.
The attacks against Huawei by the U.S. have turned things around. The company has had to defend themselves against accusations that they are spies for Beijing.
Trump placed them on the Treasury Department ‘entity’ list, prompting a fall out that affected its Android devices and enterprise business. As Huawei can no longer receive chips like CPU’s, DRAM, and NAND.