Huawei’s CEO reportedly sees tough economic times as a threat to the company. A focus on survival is said to be necessary.
Chinese websites Yucai and 163 claim that Huawei CEO Ren Zhengfei warned employees of economic risks in an internal memo. Zhengfei reportedly referred to economic circumstances as a threat to the company. The years 2023, 2024 and 2025 are said to be crucial to Huawei’s survival.
Causes and plans
According to reports, the Huawei CEO points to post-pandemic conditions, wars and United States sanctions as the biggest causes of the deteriorating outlook.
To counteract uncertainty, the company should focus on cash flow and profit growth rather than revenue growth and expansions, the CEO indicated.
Zhengfei noted that high-risk projects should be stopped. The CEO added that its own public cloud environment should be used to eliminate inefficient processes eliminated. Research and development for electric cars is expected to be scaled down.
Furthermore, Zhengfei suggested abandoning activities that have little future or yield. In addition, the CEO noted that Huawei should consider downsizing overseas markets or withdrawing from them altogether.
Furthermore, Zhengfei wants to improve customer service and increase Huawei’s focus on IT infrastructure. According to CEO, the latter category remains very promising. Huawei refused requests for comments on the reports. According to Chinese state media, the leaked memo is likely to be original.