Huawei founder asks employee for ideas to boost sales decline



Crippled by heavy US sanctions, telecommunications conglomerate Huawei is seeking ideas from its employees on how to build a better future and get its revenue back on track, media reported on Wednesday.

Huawei founder Ren Zhengfei wrote a note to employees, calling on them to contribute ideas on the company’s future direction, reports the South China Morning Post.

The memo comes at a time when the Chinese company is struggling to find a revenue stream that matches the profitability of its once-thriving smartphone business.

“Huawei’s strategy should not be decided by a handful of people as it should come from tens of thousands of experts studying our future direction and the path to get there,” Zhengfei said in the memo.

He urged 6,000 experts and hundreds of thousands of engineers to join the discussions.

“Transforming ideas into projects and products will depend on consideration by decision makers, and I hope that everything the company does respects boundaries and creates value in the short or long term,” the CEO said. from Huawei.

“Your innovation should have commercial value, rather than just being an idea,” he added.

Huawei’s consumer business, which includes smartphones, has suffered the most from US sanctions. The company’s revenue halved from a year earlier to $38.24 billion.

In May this year, Canada decided to ban Chinese telecommunications giants Huawei and ZTE from its 5G networks to ensure the “long-term security of our telecommunications infrastructure”.

Following the steps of its partners – including the UK, US, Australia and New Zealand – Canada has moved to ban the two Chinese tech companies by early 2028.

US President Joe Biden signed the law in November last year barring Huawei and ZTE from obtaining approval for network equipment licenses in the country.

Previously, the U.S. Federal Communications Commission (FCC) designated Huawei and ZTE as national communications network security threats, making it harder for U.S. companies to buy equipment from them.

–IANS

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(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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