Estimates that Huawei will lay off 10,000 workers from various business units may be a bit high, but the world's second largest maker of telecom gear, battered by competition and "other difficulties" could still be in line from some major job cuts.
"It is common to see companies cutting positions when they are faced with adversities," a company executive anonymously told China Daily. "The latest examples could be Nokia and Hewlett-Packard (NYSE: HPQ)."
Actually, the latest example could be Huawei, which has had a tough 2012, highlighted by investigations in both the United States and Europe and declining revenues. These problems, along with the rising competition, led Tong Jingguo, general manager of Shenzhen Huajing Management Consulting Co. to blog that the company was about to lay off 10,000 workers.
A Huawei spokesman called the blog's suggestion "nothing but rumors" and said the company would have "no official statement on this matter." A telecom industry expert, also speaking anonymously, seemed to give credence to the rumors when he told China Daily that "Huawei may suffer from having been too aggressive in exploring new business opportunities in the past two to three years."
For more:
- China Daily has this story
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