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Huawei Warns to “Prepare for Bitter Days”

Recently, Ren Zhifei, the founder of Huawei, issued two letters to Huawei employees. He warned not to be too optimistic about the prospects for Huawei and that people should prepare for bitter days.

Ren stated that, if they make an assessment that certain business units are not providing much value, they should be cut or the work reduced so as to focus on (more valuable portions). He also said that Huawei should give up some mediocre employees so as to reduce the cost of human resources.

“In the next few years, the whole environment (for Huawei) will not be as promising as we imagined. We should prepare for bitter days.”

He said that, unlike the 4G business that flourished for Huawei, the 5G business may just bloom in some spots, but not on a widespread scale. However, Huawei has 180,000 employees and it pays over US$30 billion in salaries and stock distributions each year. “If we can’t produce as much, how can we get the money to share?”

Source: Sina, January 21, 2019
https://news.sina.com.cn/o/2019-01-21/doc-ihqfskcn9133229.shtml