Huawei Slashes More Than 50% Workforce in India; Reduces Revenue Estimate

Huawei Slashes More Than 50% Workforce in India; Reduces Revenue Estimate
Thanks to the COVID-19 pandemic and the escalating anti-China sentiments within the US and India, Huawei is now slicing its India income goal for 2020 by as much as 50%. The firm is additionally shedding greater than half its workers within the nation amidst rising calls to boycott Chinese services in Asia’s third-largest financial system.

According to sources quoted by ET, “Workforce in network support, field deployment, outsourcing and sales department is being impacted majorly as there are no new projects or any clarity on new business from telecom operators”. The report claims that the corporate’s networks division and shopper companies have each seen large layoffs. The solely departments which have escaped largely unscathed are apparently the R&D and the Global Service Center.

Huawei was initially focusing on revenues of $700-800 million (Rs. 5,200 crore – Rs. 6,000 crore) in India in FY20-21, however is now a way more subdued topline of $350-$500 million (Rs. 2,200 crore – Rs. 3,700 crore). The firm had earned a way more sturdy $1.2 billion in 2017 throughout extra cordial relations between the 2 nations. However, Washington’s ban on Huawei’s Android utilization, adopted by rising Indo-China tensions, have virtually decimated the corporate’s enterprise in India.

While the UK has formally joined the US in banning using Huawei tools within the nation’s 5G community, New Delhi has been much less overt in its strategy on the difficulty. The authorities, nevertheless, has barred state-run BSNL and MTNL from sourcing tools from Chinese telecom producers like ZTE and Huawei. It has additionally reportedly ‘recommended’ that the non-public telcos change all present Chinese tools of their networks over time.

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