Huawei Denies the Rumor of Its Employee Structure
COVID-19 and China
Huawei's carrier business group. Photo: Credit to Huawei

On Apr 24, 2019, it was reported that 20 thousand employees of Huawei’s carrier business group will be transferred to Huawei’s consumer business group. Huawei, on Apr 25, 2019, replied that that was a rumor. According to Huawei, it keeps opening for the internal transfer of its talents. There are more than 10 thousand employees transfers within Huawei group every year, and many departments use this method to gain the talents they need. The employee could transfer to another department according to his wishes, and Huawei group will keep promoting the inside transfer of its talents to provide a better working environment.

Currently, Huawei has more than 188 thousand employees, while more than 100 thousand employees are belonging to the carrier business group. As one of the most important departments, the carrier business group is Huawei’s core department which based on the global arrangement of the telecom base station and network. In 2018, the revenue of Huawei’s carrier business group was CNY 294 billion, decreased 1.3%, YOY. On the other hand, Huawei’s consumer business group, whose main business is the smartphone, generated CNY 348.9 billion as its 2018’s revenue, with a YOY increase rate of 45.1%. In 2018, the ratio of the consumer business to the total revenue of Huawei group was 48.4%, and that’s the first time Huawei’s consumer business exceeded the carrier business in terms of revenue ratio.

In early 2019, REN Zhengfei (任正非), the founder and CEO of Huawei, said that in 2019, Huawei would keep reforming its carrier business group and consumer business group. Meanwhile, the consumer business group should help to accept surplus employees. REN said that Huawei is under a stage when it's doing strategic reform. During this time, Huawei will reduce some production lines. The consumer business group, however, should take the responsibilities to accept the surplus employees, which could not only stop the over-layoffs of other departments but also help the consumer business group to gain more talents.

Huawei published its business performance several days ago. In 2019 Q1, the sales revenue of Huawei was CNY 179.7 billion, with a YOY growth rate of 39%, and its net profit margin was 8%. In terms of the consumer business, so far Huawei’s shipments of its smartphones are more than 50 million and are expected to increase. The carrier business got a great achievement as well. By the end of March, Huawei has signed 40 commercial contracts of 5G service with telecom carriers all over the world and shipped more than 70000 5G base stations. With the approaching of 5G time, Huawei is trying to sell its 5G facilities to other countries, which may lead to an increase of Huawei’s carrier business group.



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