China’s Huawei will spend more on production equipment this year to ensure continuity of supply, cut redundancies and demotivate inefficient managers as its threats with a “live-or-die moment” in the wake of the brakes. export to the US, said founder Ren Zhengfei.
“The company is facing a living or dying moment,” Ren, a former Chinese military officer, said in the memo, which was seen by Reuters. Huawei confirmed the contents of the memo.
His remarks come as the United States said this week it will take 90 days for a recall that allows Huawei Technologies to purchase components from US companies to supply existing customers, but also moved to add more than 40 units. Huawei on its economic blacklist.
Huawei is a key topic in a broader US, Chinese and Chinese trade war, with Washington reducing it with a trade ban in May citing national security risks. However, Huawei posted a 23% revenue jump in the first half, aided by strong smartphone sales in its home market.
But he expressed confidence in Huawei’s full-year results and said it should “spend money and resolve the issue of continuity of production” by raising strategic investments for things including production equipment.
According to the memorandum, Huawei, which employs nearly 190,000 people worldwide, is reforming its operation globally by giving more power to the front line, cutting off reporting layers and eliminating inefficient posts.
While Ren said in June the ban was worse than expected and that Huawei’s revenue could stay flat in the next two years, in the memo he urged staff to try their best to meet their sales goals. described at the beginning of the year before the ban – which was to increase its revenue to about $ 125 billion from more than $ 100 billion in 2018.
He also warned of the risk of cash flow if the receipts are not paid on time. He demanded that staff be conservative in securing timely paid fees from customers, because otherwise the lack of liquidity could be fatal for the company./investing