Huawei has denied rumors of a large-scale layoff, NetEase Tech reported Saturday.
Rumors suggesting Huawei will lay off as many as 20,000 employees spread wide across social media this past weekend. Huawei has responded claiming it will dismiss employees who have failed company evaluation processes rather than carry on a large-scale layoff.
Huawei claimed it is an approach to increase company efficiency by getting rid of unqualified employees and recruiting more high profile talent. Huawei also announced earlier last week that it would recruit more than 10,000 new graduates from campuses this year.
With global economic development slowing down, 115 companies out of Fortune company’s Fortune 500, including IBM, Microsoft, Sony and Qualcomm, have announced layoff plans this year.
Chinese e-commerce giant, Alibaba, announced in early September that it would reduce campus recruitment numbers this year. Based on the information released, Alibaba has shrunk campus recruitment to two thirds of its original target of 3000 new recruits.
Compared to Alibaba’s more cautious attitude, Huawei may hold more confidence in expansion. Huawei’s half yearly report demonstrated company sales revenue to have increased by 30% compared with the same period last year, with 18% operational profit.
It’s also reported that Huawei made an internal announcement last Friday that it would distribute USD 177 million to existing employees to smooth over concerns. Employees will likely receive an average of USD 1,000.
(Photo from ebrun.com)