Huawei Technologies Co., a telecommunications equipment company, has reportedly reduced its revenue target for 2020 in India by over 50%. Additionally, the multinational technology company is laying off more than half the capacity of its employees in the country.
The decision has been made amid the increasing calls to boycott Chinese products in the 3rd largest economy in Asia. The technology company is currently targeting over $350 to $500 million revenue in 2020, a decline from its previous target of roughly $700 to $800 million.
People with knowledge of the matter have cited that Huawei is furloughing over 60% to 70% of its staff in India, excluding those who are in the R&D (research & development) as well as the global service center. The decline in the revenue target comes along the heels of the India-China border dispute. The border tensions started in early May. However, it previously took a violent turn when troops clashed in Eastern Ladakh. 20 soldiers, including a commanding officer, were reportedly killed in the clash with Chinese forces at Galwan Valley in June 2020.
As per reliable reports, despite the rising impact of the ongoing coronavirus pandemic, the border clash between India and China at the Line of Actual Control has been making headlines for over a month now. The Indian administration had also informed 2 state-run telecommunications companies to deploy equipment that are locally made rather than using Chinese telecom equipment for the upgradation of mobile networks to 4G.
In addition to Chinese goods, the Indian government also has banned 59 Chinese apps as the tensions along the border continue to increase, by discontinuing the usage of these apps in both mobile as well as non-mobile Internet-enabled devices.
Huawei is yet to respond to requests for comments on the recent employee lay-off report.
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