The Chinese tech giant Huawei is facing a series of backlashes from its major markets. The company was on the road to become the largest telecom manufacturer and the first to launch 5G in the world. But now the company is finding it difficult to accomplish its ambitions. As the United States accompanied by India has imposed a series of the ban on Huawei due to the growing inter-state tensions. Consequently, the tech company has decided to cut its Indian revenue target for 2020 by up to 50%.
Huawei Suspends Majority of the Indian Staff and Reduces Revenue Target By Almost 50%
In addition to that, Huawei is suspending more than half of its staff working in India. It happened after border skirmishes took place between the two neighboring countries, China and India. After which Indian authorities asked for the boycott of Chinese products in their country.
According to a source, Huawei is now expecting $350-$500 million in revenue for 2020, as compared to nearly $700-800 million it was aiming earlier.
As a result, the company is laying off 60-70% of its Indian staff, excluding those in research and development and the global service center. The report came as a disaster for many employees who lost their jobs and it can lead to further escalation of tensions between the company and its bigger foreign market. Furthermore, it can also increase anti-China sentiments in the local population of India.
India has also asked two state-run telecoms companies to utilize locally-made rather than Chinese telecom equipment to enhance their mobile networks to 4G. On the other hand, Huawei did not immediately reply to a request for comment on the report.