Huawei rewards workers for revenue boost despite US ban
Huawei Technologies quickened revenue growth to roughly 30pc in the first half after select teams secured critical supplies to keep production going, despite US technology export restrictions, people familiar with the matter said.
Two months into a Trump administration ban that cut Huawei off from American suppliers, China's largest technology company is starting to feel the pinch. But while revenue growth of 30pc marks a slowdown from 39pc in 2019's first three months, it was up sharply from 2018, the people said, asking not to be identified discussing a private matter. Executives told staff they were relieved it had not been worse, one of the people said.
The question is how long Huawei can keep up that momentum as the curbs begin to weigh. It is pulling out all the stops to boost sales, assigning as many as 10,000 developers across three shifts a day to work on alternatives to American software and circuitry.
It has thusfar managed to boost revenue by aggressively securing contracts for fifth-generation networking equipment, the people said.
The firm is boosting morale, granting awards to a number of employees for helping it avert an immediate crisis, they said. The recipients were mainly responsible for hoarding components ahead of the ban, identifying replacements for American parts or negotiating with suppliers to keep up the flow of materials, the people added.
Huawei remains on shaky ground. It is still on a US blacklist that threatens to choke off the American components and software it needs to run its smartphone and networking businesses.
Billionaire founder Ren Zhengfei warned last month that the sanctions would curtail its revenue by roughly $30bn (€27bn) in the coming two years, wiping out its growth.
The firm is now making adjustments to businesses most threatened by US sanctions, reassigning employees from the carrier and enterprise units to the faster-growth consumer division, the people also said.