Ren Zhengfei, the founder of Chinese tech giant Huawei, has announced that he is going into "survival" mode, where a lot will be sacrificed to save the company. Zhengfei admitted to the employees that macroeconomic problems are directly threatening the future of the company and informed them about the measures to be taken and future plans. According to Zhengfei, global demand will decrease over the next ten years, and the next three years will be particularly difficult for the company, and Huawei will have to focus on surviving this period. The CEO wrote that he is not sure whether Huawei will achieve this between 2023 and 2024. The pessimistic outlook was caused by the economic effects of the pandemic, war and US sanctions.

Mass layoffs may occur!

Ren Zhengfei also noted in his note that for these reasons, Huawei should freeze complex high-risk projects, move to the cloud platform to increase efficiency, reduce research in non-core areas such as electric vehicles, and put businesses under the knife that are less likely to bring in profits. Zhengfei also did not rule out versions that the company will reduce its presence in some foreign markets and send its employees back. This means massive layoffs and the company may pull out of some countries. On the other hand, Zhengfei said that the future of the company is uncertain in the next few years.