Popular Hong Kong new online media HK01 Network recently reported that, according to unverified internal sources from Huawei, the company is planning a mid-July announcement that it will cut its workforce in half. The total employee headcount will be reduced from around 190,000 to around 100,000. The recently expanded sanctions by the United States against Huawei may significantly cut off Huawei’s critical supply chain and may cause fatal damage to the company. Some senior Huawei employees said a large number of retirees decided to cash out half of their Huawei stocks and keep only the other half. The news triggered a wide discussion in the Chinese Internet community. Most had doubts about the news, since the drastic layoff could result in social stability issues. The Chinese government may not want to see such a destabilization move and may intervene. According to Huawei’s 2019 Sustainability Report, the company did have 188,000 employees by the end of 2018, among whom are 28,000 overseas employees. Huawei has kept quiet on this news and has not released any official response.
Source: HK01, June 15, 2020