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"With survival the main principle, marginal businesses will be
shrunken and closed, and the chill will be felt by everyone,"
founder Ren Zhengfei wrote in an email to staff on Monday, the
financial news outlet Yicai reported.
Huawei said the email was for employees and declined to comment
further.
Yicai did not elaborate on whether Ren explained which
businesses were "marginal" but said he said "surplus personnel"
would be moved to reserve teams.
Ren also drew attention to the importance of the company's
traditional focus on information and communications technology (ICT).
"We must be clear that building ICT infrastructure is Huawei's
historical mission, and the more difficult the times are, the
more we cannot waver," he said.
Huawei would "give up completely" in some unspecified countries,
while next year it would reduce "blind" investment and expansion
and maintain an appropriate business rhythm, the report said.
The global economy would continue to decline over the next
decade, while war, the "continued blockade" from the United
States and the COVID-19 pandemic would leave "no bright spot in
the world" in the next three to five years, Yicai cited Ren
saying.
The United States put Huawei on an export blacklist in 2019 that
barred it from accessing critical technology of U.S. origin,
hurting its ability to design chips and source components from
outside vendors. The United States says Huawei is a security
risk, which the company has denied.
Huawei's first-half results showed a 52% drop in profits to
15.08 billion yuan, according to Reuters calculations, with a
weak economy, COVID disruption and supply chain challenges
hurting the company's device business that sells smartphones and
laptops.
Ren mentioned the company's cloud computing, digital energy and
smart car businesses as areas where the company should see
development, according to the report.
Ren said the outlook for the company was uncertain beyond the
next couple of years.
(Reporting by David Kirton; Editing by Robert Birsel)
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