Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Huawei faces a 'life or death crisis,' CEO says as he lays out 'battle' strategy amid US pressure

Huawei faces a 'life or death crisis,' CEO says as he lays out 'battle' strategy amid US pressure

Huawei CEO Ren Zhengfei laid out plans to bring more efficiencies to the organization. This included simplifying the reporting structure, cutting down on surplus staff, axing repetitive jobs and moving managers to other positions where required.

Huawei is facing a “life or death crisis” amid continued pressure from the U.S. government, its founder and CEO told employees, as he laid out a strategy for the Chinese telecommunications giant going forward.

In a memo to employees of Huawei’s networking division seen by CNBC, Ren Zhengfei described the company’s current situation as a “battle.” Ren is well-known for using military language in his communications with employees.

In May, the company was put on a U.S. blacklist — or the so-called Entity List — which restricts American businesses from selling to the Chinese firm. Huawei relies on a lot of American technology from software to hardware.

But on Monday, the U.S. administration extended a reprieve for the telecommunications company for 90 days. U.S. businesses can sell specific products to Huawei during the 90-day period.

“Now that the company is at a life or death crisis, our first priority is to encourage all crew to make contributions, and the second is to choose and promote talents, to add ‘new blood’ to our system,” Ren said, according to a CNBC translation of the memo. He said there will be “new blood” in the company in three to five years.

The Huawei boss laid out plans to bring more efficiencies to the organization. This included simplifying the reporting structure, cutting down on surplus staff, axing repetitive jobs and moving managers to other positions as required.

He also urged staff to make sure people pay attention to the quality of the contracts they are signing with customers to ensure Huawei is paid on time and does not suffer any cash flow issues.

Ren added that Huawei would also accelerate the purchase of important equipment in order to meet customers’ demand.


‘Security threat’ to the US

The Chinese telecommunications firm has been increasingly caught up in the trade war between the U.S. and China.

As a result, Huawei has been trying to wean itself off reliance on American technology. The company designs its own processors for its smartphones and recently released an operating system for various devices called Harmony OS. Richard Yu, CEO of Huawei’s consumer division said that it would prefer to continue to using Google’s Android operating system, but if it was not able to, it could switch to HarmonyOS “immediately.”

President Donald Trump has sent mixed signals over the last few months about the fate of Huawei in the U.S.

In May, he said that it was “possible that Huawei would be included in a trade deal.” But this weekend, Trump said he didn’t want to do business with Huawei “because it is a national security threat.”

U.S. Secretary of State Mike Pompeo, however, said the message from the administration is clear.

“President Trump has been unambiguous. I don’t think there’s a mixed message at all,” Pompeo told CNBC. “The threat of having Chinese telecom systems inside of American networks or inside of networks around the world presents an enormous risk — a national security risk. Our mission set is to find a way to reduce that risk, to take that risk down as much as we possibly can.”

The U.S. has said that Huawei products carry a risk of allowing Chinese authorities to spy on Americans via backdoors, something the Chinese tech company has repeatedly denied.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
French Police Probe Suspected Weather-Data Tampering After Unusual Polymarket Bets on Paris Temperatures
CATL Unveils Revolutionary EV Battery Tech: 1000 km Range and 7-Minute Charging Ahead of Beijing Auto Show
Changi Airport: How Singapore Engineered the World’s Most Efficient Travel Experience
Power Dynamics: Apple’s Leadership Shakeup, Geopolitical Risks in the Strait of Hormuz, and Europe's Energy Strategy Amidst Global Challenges
Apple's Leadership Transition: Can New CEO John Ternus Navigate AI Challenges and Geopolitical Pressures?
Italy’s €100K Tax Gambit: Europe’s Soft Power Tax Haven
Budapest latest News Roundup
Travel on all public transport in the Australian state of Victoria will be free in May and then half price for the remainder of this year as the government ramps up help for consumers battling high fuel costs
News Roundup
Microsoft lost 2.5 millions users (French government) to Linux
Privacy Problems in Microsoft Windows OS
News roundup
Hungary's elections
Péter András Magyar and the Strategic Reset of Hungary
Hungary After the Landslide — A Strategic Reset in Europe
The CIA’s Secret Technology That Can Find You by Your Heartbeat Successfully Locates Downed Airman
Operation Europe: Trump Deploys Vance to Hungary to Save the EU
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Iran warns of $200 oil as forces target merchant ships in Gulf
Japan to Release 45 Days of Oil Reserves Amid Iran Conflict
Global Energy Agency Announces Record Release of 400 Million Barrels to Stabilize Oil Markets Amid Hormuz Disruption
U.S. and Israel Intensify Strikes on Iran as Conflict Expands to Lebanon and Gulf States
When the State Replaces the Parent: How Gender Policy Is Redefining Custody and Coercion
Larry Summers, the former U.S. Treasury Secretary, is resigning from Harvard University as fallout continues over his ties to Jeffrey Epstein.
U.S. stocks ended higher on Wednesday, with the Dow gaining about six-tenths of a percent, the S&P 500 adding eight-tenths of a percent, and the tech-heavy Nasdaq climbing roughly one-and-a-quarter percent.
Nvidia posted better than expected results for the January quarter on Wednesday and forecast current quarter revenue above market estimates.
Ukrainian government intensifies pressure on Hungary and Slovakia with oil blockade
Britain’s Channel Crisis: Paying Billions While the Boats Keep Coming
Woman Receives Gift Card for Christmas – Discovers It Is ‘Worth’ 63,000,000,000,000,000 Pounds
United Nations Calls for Global Action Against Disinformation and Hate Speech Online
Tucker Carlson warns of an inevitable clash in Western societies over mass migration
OpenAI CEO Sam Altman praises the rapid progress of Chinese tech companies.
Poland's President Karol Nawrocki ENDS support for Ukrainian citizens:
Italy's PM Giorgia Meloni highlights record employment and economic growth
Chancellor Friedrich Merz Re-elected as CDU Leader, Opposes AfD Influence
Trump Directs Government to Release UFO and Alien Information
Trump Signs Global 10% Tariffs on Imports
UK Government Considers Law to Remove Prince Andrew from Royal Line of Succession
Two teens arrested in France for alleged terror plot.
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
Former President Yoon Suk Yeol Sentenced to Life in Prison for Abuse of Authority
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
German Chancellor Friedrich Merz calls for real name use on social media.
Italian Police Arrest Man After Alleged Attempt to Abduct Toddler at Bergamo Supermarket, Child Hospitalised With Fractured Femur
British Tourist Arrested at Hong Kong Airport After Meltdown and Vandalism
×