According to reports in foreign media, Chinese telecom device maker Huawei has lowered its Indian revenue target for 2020 by 50% and the company plans to cut 60% to 70% employees, which will not include R&D or global service center staff, in the country.
It is said that Huawei's move is to respond to the sudden drop of demands for devices and services in the Indian market.
Huawei's Indian branch follows India's fiscal year. In 2017, Huawei India's revenue was USD1.2 billion and it had been declining since then. One of the major reasons was that the financial situation of Indian telecom companies was tight, which led to demand decrease. An insider revealed that Huawei previously set its revenue target between USD350 million and 500 million in India for 2020.
Commenting on the reason for lowering its revenue target, Huawei said that the company believed that its two major telecom clients in India would not place new order. Bharti Airtel and Vodafone Idea are Huawei's major clients in the Indian market. Therefore, the Chinese company plans to reduce its regular employees, contractors, and third-party employees in the marketplace.
Huawei's layoff will reportedly affect people in network support, on-site deployment, outsourcing, and sales divisions.