Huawei Called Layoffs of 60% of Their Employees in India, What Causes it?

Huawei Called Layoffs of 60% of Their Employees in India, What Causes it?

Sunday, August 2, 2020

UPDATimes - One of the well-known technology companies from China namely Huawei is reported to have done layoffs (Termination of Employment) of more than half of their employees in India. It is known that as many as 60-70% of Huawei employees in India have been laid off

The Chinese technology giant, Huawei, is said to have laid off workers from 60 to 70 percent of their employees in India.

Reporting from Reuters, Sunday, August 2, 2020, Huawei also cut their income targets in India by 50 percent. But it is not yet known why Huawei did the dismissal.

Huawei itself is reluctant to provide comments related to termination of employment they do. At present Huawei only leaves a few employees to work in the Global Service Center and also in the research and development department.

Some reports said that the reason Huawei took this dismissal step was because the company was under pressure from the Indian government which is currently starting to block dozens of applications belonging to Chinese companies.

Even so, the possibility of dismissal of employees by Huawei in India will not affect the marketing of their products in India. The reason is that India is now one of the biggest technology markets, especially for smartphone devices.

Many say that one of the things that made Huawei lay off was due to pressure from the Indian government which is now starting to tight on Chinese companies. Previously it had blocked dozens of applications made in China in the country.

But hopefully the layoffs conducted by Huawei will not have an impact on marketing Huawei products in India. Because India is currently one of the biggest markets for the technology industry, one of which is a smartphone.

Despite the issue of layoffs, a few days ago reports emerged that said US companies would soon get permission to return to do business with Huawei.

A US government official said companies in the country would likely be back in business with Huawei. The US is said to approve licenses for the companies in the next two to four weeks.

Reported by Reuters, the licensing was a new attempt by US President Donald Trump to reduce restrictions on Huawei. Previously, the US Secretary of Commerce, Wilbur Ross, said the license would be issued when there was certainly no threat to national security.

Responding to Ross's statement, the two chipmakers, which are Huawei's supply partners, said they would submit more licenses needed. However, both companies declined to be named.

Former US Department of Commerce official Kevin Wolf believes many companies want to get the license. "Because there are no losses, companies will submit their requests, as required by regulations," Wolf said.

A Huawei spokeswoman said the entity list restrictions had to be completely removed rather than providing temporary licenses applied to US vendors. Huawei itself repeatedly stressed that there is no threat to cyber security in any country.

In May, Huawei was added to the US trade blacklist. This policy makes US companies unable to supply new goods and services made in that country, unless they get a license that is likely to be refused.

Trump after meeting with Chinese President Xi Jinping last month announced that US companies would be able to sell their products to Huawei again.

Not only that, Huawei now also decided to cut their income targets in India by 50% after laying off the job. Of course it raises big questions from many people, especially Huawei fans in India.

Huawei was also reluctant to provide comments regarding their reasons for laying off. Currently it is said to leave only a few employees who work in the Global Service Center and research and development department.