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Huawei expects a difficult year ahead, sees survival as top priority

By Cookie Monster - on 1 Jan 2020, 12:01pm

Huawei expects a difficult year ahead, sees survival as top priority

The Huawei Mate 30 Pro.

Huawei is expecting a "difficult" year ahead despite having a strong performance in 2019. 

In a new year's message written by Huawei's rotating chairman Eric Xu, the Chinese company will not be growing as rapidly as it did in the first half of 2019. Huawei saw an 18% spike in sales to $120 billion in 2019, but it missed internal projections. The ongoing trade war with U.S continues to undermine some of its key businesses such as its mobile business where new phone models have no access to Google's apps and services. 

“Survival will be our first priority,” Xu, one of three executives who take turns running the tech giant during the year, said in a memo provided to Bloomberg. “We won’t grow as rapidly as we did in the first half of 2019, growth that continued throughout the year owing to sheer momentum in the market.”

Xu mentioned in the memo several strategies to ride out the year ahead. He highlighted the need to weed out as many as 10% of the company's worst performing managers, merge or downsize some support and operational units, reassign employees to other divisions, continue to develop its own mobile platform and accelerate the use of self-made chips in cloud and enterprise sectors.

Source: Bloomberg

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