Huawei loses its workforce for the first time in 13 years.
Huawei in 2010 cut more than 2,000 jobs by 2021, the biggest cut since 2008, mostly due to US sanctions.
According to Huawei report on August 18, by the end of the year to 2021, the number of employees at the company has dropped to 195,000 people, and in 2020 to less than 197,000 people. Huawei has started providing annual HR reports since 2008. And last year. The number of employees in the company is constantly increasing. .
Plunge after 2021 Huawei’s revenue has fallen by a third as the Shenzhen-based company suffers from US trade sanctions. Recently, the company has not been able to access advanced American technologies, which is why it is paralyzed in some business areas, especially in the most profitable segment of smartphones. In the first half of this year, Huawei’s revenue fell 5.9 percent year-on-year.
In March, outgoing Huawei chairman Guo Ping raised questions about job cuts over the past two years. He only mentioned 26,000 new graduates to be hired by the company in 2020 and 2021 and 2022. There should be at least 10,000 graduates.
Huawei has been listed as a US company since 2019. Can. Since then, the company has constantly struggled with business problems. The company is now trying to change its lines of business to limit the impact of the US ban. Despite the overall reduction, the company increased its research and development (R&D) workforce. In 2021 at the end of 2015, 54.8% of all employees work in this area, five years ago it was 45%. R&D expenses also increased to 142.7 billion yuan (US$21 billion) from 800 million yuan (US$117.8 million), accounting for 22.4% of total sales.
In addition to Huawei, Chinese tech giants Alibaba and Tencent have also shed staff to cut costs. Alibaba reported that it laid off about 10,000 workers in the three months ended June 30, and Tencent also laid off about 5,500 workers in the second half of 2022. quarter – for the first time since 2004.
Bao Lam (Consequences SCMP)