"Life or death" .. Huawei President and his staff plan in the war with America
Huawei founder Rin Zhangfei said the Chinese company will spend more on production equipment this year, to ensure continuity of supply, reduce excess roles and reduce incompetent managers in the "life or death" plan, following export restrictions to the United States.
His comments come as the United States announced this week that it would extend the Chinese company 's exemption by 90 days to buy components from US companies to supply existing customers.
In a military note sent on Monday, Rein asked Huawei employees to work vigorously to achieve sales targets as the company enters the "battle mode" to survive the crisis.
"The company faces a moment of life and death," Ren, a former Chinese army officer, said in the memo, obtained by Reuters.
"If you can't do the job, make room for others," he told his staff. "If you want to come to the battlefield, you have to connect yourself to the tank. The situation needs this kind of determination!"
Huawei has been a key topic in a year-long US-China trade war, with Washington banning trade in May because of national security concerns.
However, Huawei posted a 23% jump in revenue in the first half, supported by strong smartphone sales in the domestic market.
Rehn said in the note that the good results in the first half do not reflect the real situation of the company, and that the improvement will be shown by working throughout the year with a strategic plan.
But he said he was confident that the crisis would be passed this year, saying he needed to "spend money and solve the problem of continuity of production" by increasing strategic investment in production equipment.
According to the memo, Huawei, which employs nearly 190,000 people worldwide, is reforming its operations globally by giving more front-line power, eliminating administrative layers and eliminating inefficient jobs.
"In 3-5 years, new blood will flow to Huawei, and after we survive the most difficult moments in the company's history, a new army will be born. To do what? To dominate the world."
He also warned of cash flow risks if receivables were not paid in time. Employees were asked to be discreet in ensuring timely payment of dues by customers, otherwise the lack of liquidity could be fatal for the company.