Huawei India laying off staff as telecom business falls


Union claims international bank plans to layoff 60 staff in ...

Chinese telecom equipment maker Huawei has reduced its India revenue target for 2020 by up to 50% and is laying off 60-70% of staff. This excludes those in research and development and the Global Service Centre as per a media report.

The move comes as the company battles falling demand for its equipment and services amid border hostilities between China and India. India has joined the US and UK in raising security concerns over Huawei’s links to the Chinese government.

Meanwhile, New Delhi has already barred state-run carriers from sourcing equipment from Chinese companies Huawei and ZTE and is believed to have informally nudged private telcos to replace Chinese equipment over time, without disrupting consumer services. 

Huawei is now targeting $350-$500 Mn in revenue for 2020, compared with roughly $700-800 Mn it was targeting earlier. As a result, it is thus “letting go of on rolls, contract and third-party employees in India,” said one of the persons in the know.

The company’s India unit employs close to 700 people on its rolls, plus hundreds through third-party firms, as per industry estimates. This excludes staff in the company’s R&D center. The 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.

Consequently, the firm needs people for some annual maintenance contracts for existing businesses with telcos. Both the networks and consumer businesses have seen layoffs.

The move comes as the firm is finding it tough to expand its enterprise business in India, with no new major customer additions lately. The firm which competes with the likes of Ericsson, Nokia, ZTE, and Samsung is not expecting any new business from its only two major telecom customers in the country--Bharti Airtel and Vodafone Idea. The business provides enterprise networking products including routers and switches to various industries. The firm has also scaled down its consumer or handset business after a US ban. It hasn’t launched many devices in India. In the current situation, however, it is not the only Chinese vendor hit by recent developments. ZTE has slashed its workforce by almost 30% to nearly 600 due to declining India business as telecom operators have cut down on expenditure.

Comments

Post a Comment

Popular posts from this blog

Should Succession Plan be a secret?

Image
  There are many organizations and HR Heads who believe that the succession plan should always be kept confidential and divulging the succession planning process to concerned employees can affect the organization negatively. In many companies, the succession planning process is a mystery and promotions are a surprise.  Even today many management professionals believe that revealing the succession plan to employees can destabilize the organizational harmony and team spirit. Is this belief a fact or just a disquiet? Should the management hide the succession plan from employees, thus paving way for prognostications and gossips?   Succession planning is an important strategic process, but the absence of transparency might lead some high-potential talents to quit the organization if they do not see the opportunity of formidable growth opportunities. Communicating the plan of advancement to employees will have a positive effect on their motivation to take up developmental objec...
Read more

My Boss told me to Fuck off & I became a Fucker

Image
  “It is sometimes difficult to get rid of first impressions” said Sherrilyn Kenyon, best-selling US author. It was my first job, and as an ambitious, young, aspiring HR professional, I was trying my level, best to impress everybody at work, including my impudent boss. I liked my work, especially the challenges pertaining to the job. The only thing I could not adapt to, was the boorish treatment meted out by our boss to his subordinates. Human beings tend to make mistakes, and being a trainee, I also made a mistake at work, and in the presence of all my colleagues, my boss shouted at me “Fu…….off”. Humiliated and depressed, I went to the locker room with flooded eyes. One of my colleagues advised me that this is very normal in this company, and even though a rude person, our manager is very good at heart. Due to my personal commitments, I decided to stay in the company until I get a new job. Though despised to the core, I continued to listen to unpleasant phrases from him. I do not...
Read more

Standard Chartered to reduce hundreds of jobs

Image
London-headquartered Standard Chartered has come up with a list  of several hundred employees that it plans to eliminate, and a cutback program is set to get underway. The company right now employs about 85,000 people. The statement from the bank highlights, “A small number of roles are being made redundant in line with our commitment to transforming the bank and ensuring its future competitiveness.” It further stated, “This is not the result of any impact from the COVID-19 pandemic.” Focused on markets in Asia, Africa and the Middle East, the lender has faced pressure from investors to reduce costs to improve returns to boost its share price. The bank last month underwent a radical revamp that shrunk middle management, and invested billions of dollars in improving its technology. Job cuts at Standard Chartered had been put on hold early on during the Covid-19 outbreak, with the bank saying it did not “intend to make any layoffs because of the pandemic.” Those losing their jobs wil...
Read more