Huawei disputes reports of
massive layoffs, concedes possible job cuts
Estimates that Huawei will lay off 10,000 workers from various business units
may be a bit high, but the world's second largest maker of telecom gear,
battered by competition and "other difficulties" could still be in line from
some major job cuts.
"It is common to see companies cutting positions when they are faced with
adversities," a company executive anonymously told China Daily. "The
latest examples could be Nokia and Hewlett-Packard (NYSE: HPQ)."
Actually, the latest example could be Huawei, which has had a tough 2012,
highlighted by investigations in both the United States and Europe and declining
revenues. These problems, along with the rising competition, led Tong Jingguo,
general manager of Shenzhen Huajing Management Consulting Co. to blog that the
company was about to lay off 10,000 workers.
A Huawei spokesman called the blog's suggestion "nothing but rumors" and said
the company would have "no official statement on this matter." A telecom
industry expert, also speaking anonymously, seemed to give credence to the
rumors when he told China Daily that "Huawei may suffer from having
been too aggressive in exploring new business opportunities in the past two to