Huawei cutting staff in India as prospects turn sour – report

Reports have emerged suggesting Huawei is laying off staff and cutting revenue objectives in India, as the anti-China sentiment gathers steam around the world.

Some might have been expecting such a move from the Chinese company, the relationship between India and China has been increased strained in recent months, but the report from the Economic Times suggests Huawei has been firmly pushed off its pedestal by the White House.

Although not officially confirmed, the rumours suggest Huawei is cutting its revenue expectations by 50% for 2020, while it will also be reducing its headcount by 60-70%. These reductions will also include its R&D work in the country as its commercial prospects start to look slimmer in India.

With tensions rising quickly between the two Governments, it has been suggested India is prepared to ban its state-owned telecoms operators, BSNL and MTNL, from working with Huawei, while Reliance Jio has already said it would not work with the under-fire vendor.

There are of course two other weighty customers to work with in this market, however exclusion from BSNL, MTNL and Reliance Jio is a massive loss for Huawei. The two state-owned telecoms operators are attempting to build 4G networks, while Reliance Jio is at the front of the back for 5G work. There is a lot of money being left in the market for rivals to plunder.