Ren Zhifei, the founder of Huawei, according to a Chinese media report (January 21) issued two letters to Huawei employees in which he warned them not to be too optimistic about the prospects for Huawei and that they should prepare for bitter days. Ren Zhifei stated that, if they assess that certain business units are not providing much value, they should be cut or the work reduced so as to focus on more valuable segments. He also said that Huawei should let go some mediocre employees so as to reduce the cost of human resources. He said “In the next few years, the whole environment (for Huawei) will not be as promising as we imagined. We should prepare for bitter days.” He also said that, unlike the 4G business that flourished for Huawei, the 5G business may just bloom in some spots, but not on a widespread scale. Pointing out that Huawei has 180,000 employees and it pays over US$30 billion in salaries and stock distributions each year, he said “If we can’t produce as much, how can we get the money to share?”
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