Huawei has cut its Indian revenue target for this year by up to 50% and is laying off more than half of its staff in the country, according to people with knowledge of the matter. Amid increasing hostility between China and India on their border, the Shenzhen firm’s products have had their demands plunging due to calls for a boycott on Chinese goods.
Last month, India banned 59 Chinese apps citing security concerns and has since prohibited state-run telecoms firms from using equipment manufactured in China. The firms have been asked to replace Chinese equipment over time, without disruption to consumer services.
Excluding employees in research and development and the Global Service Centre, Huawei is laying off 60-70% of its Indian staff. According to estimates, the company’s India unit employs about 700 people directly, in addition to hundreds through third-party firms. A person familiar with the matter stated:
“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.”
Huawei, which posted $1.2 billion in revenue in 2017, was targeting about $700-800 million in revenue this year. It has now updated its expectations to roughly $350-500 million, which is about half of its earlier aims. When asked to comment on the matter, Huawei did not respond.
Source: The Economic Times