Huawei CEO Ren Zhengfei has reportedly told staff that tough economic times represent a real threat to the company.
Reports in Chinese outlets
Yucai and
NetEase allege that Ren posted a missive on Huawei’s internal networks in which the CEO called for the company to prioritize cash flow and profit instead of growth and scale.
Ren’s reasoning is that the global economy is in for up to a decade of depressed demand, with very tough years expected from 2023 to 2025 – a period during which a focus on survival will be necessary.
He reportedly wrote he is uncertain whether Huawei can “break through” the 2023-2024 period.
The CEO blamed the combination of post-COVID economic complications, war, and US sanctions for his pessimism.
He therefore wants Huawei to halt complex projects that have high risk of failure, use the company’s own cloud to improve efficiencies, reduce R&D on items like electric cars, and abandon businesses that have little prospect of turning a profit.
Ren foreshadowed withdrawal from or downsizing in some overseas markets and repatriation of staff.
Customer service will be prioritized.
The company will also focus on IT infrastructure, a market Ren believes will continue to offer opportunities.