Huawei-CEO talks about a ‘moment of life or death’ in internal memo

Get a free Techzine subscription!

Ren Zhengfei, CEO at Huawei, emphasises in an internal report that Huawei represents a decisive moment in the company’s history. The trade war with the US culminated and, according to the CEO, the company had to prepare itself for a tough time.

Bloomberg reports that Zhengfei states in his internal memo that employees who are not yet using their potential to the full must get ready to form “commando squads”. They will have to explore new projects. If employees do well in these teams, they are promoted to “company commander”. Employees who are unable to find a suitable role for themselves receive a quarterly discount on their salary until they are able to do so.

“If you can’t do the work, make way for our tank to roll on; and if you want to get to the battlefield, you can tie a rope around the ‘tank’ to pull it along, everyone has to have this kind of determination! The internal memo full of war rhetoric comes shortly after the American Commerce Department gave Huawei a 90-day postponement in order to be able to continue trading in components with American companies.

Good grades misleading

In the CEO’s report, he also states that the increase in turnover in the first half of 2019 gives a distorted picture. Turnover grew by 23 percent, but according to Zhengfei this is due to the fact that Chinese customers paid on time. According to the CEO, the situation is not as rosy as it seems, due to the trade war with the US.

“In the first half of the year, our results looked good, probably because our Chinese customers made payments on time. The large volume made the money flow look good, but this is not the real situation,” reported Zhengfei.

This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.