Securities Daily, 1/20/09
According to an employee with Chinese telecom equipment manufacturer Huawei, the company has a plan to lay off 5% of its workforce before the 2009 Chinese New Year (Jan 25-31). Another Huawei employee stated that the company has had a job-cutting program all along, but has not directly implemented it until now. This time the company will strictly follow its plan, in order to motivate the workforce.
Huawei currently employs approximately 30,000-40,000 staff in China. A 5% cut to its workforce equates to 1,500 – 2,000 workers.
Editor's Note: Earlier reports suggested that Huawei planned to lay off 5% of regular employees and 10% of management. For more background, please see "Rumor: Huawei to Lay Off Employees", MD 12/15/08 issue.