Huawei founder Ren Zhangfei said the Chinese company would spend more on production equipment this year, to ensure continuity of supply, reduce excess roles and reduce the number of incompetent executives in the company. “life or death” plan, as a result of export restrictions to the United States.
His comments come as the United States announced this week that it will extend the 90-day Chinese company’s exemption to purchase components from US companies to provide existing customers.
In a military style note sent Monday, Ren asked Huawei’s employees to work hard to achieve their sales goals as the company enters “battle mode” to survive the crisis.
“The company is facing a life or death moment” said Ren – a former Chinese army officer – in a memo obtained from Reuters.
However, Huawei recorded a 23% increase in revenue in the first half, thanks to strong sales of smartphones in the domestic market.
Ren said in the note that the good results in the first half do not reflect the actual position of the company, and that the improvement will be demonstrated by working throughout the year with a strategic plan.
But he said he was confident that the crisis would be resolved this year, saying he needed “to spend money and solve the problem of continuity of production” by increasing strategic investments in production equipment.
According to the note, Huawei, which employs nearly 190000 people worldwide, is reforming its operations around the world by giving more front-line power, eliminating administrative layers and eliminating inefficient jobs.
“In 3-5 years, Huawei will have new blood and, after surviving the most difficult moments of its history, a new army will be born.What to do to dominate the world.”
“In 3-5 years, new blood will flow to Huawei, and after we survive the most difficult moments in the history of the company, a new army will emerge. To do what ? to control the world.
He also cautioned against cash flow risks if the debt was not paid in a timely manner. he asked staff to be discreet to ensure timely payment of contributions by clients, otherwise the lack of cash could be fatal for the company.