Thus, information is circulating on the Internet that Huawei is abandoning Europe. Yes, there are different aspects behind this topic and we are going to tell you the short story.
Huawei is leaving Europe?
No, Huawei is not giving up on Europe.
What is happening:
Huawei is about to transfer its workforce and business operations from different European headquarters to a single, efficient and better location.
Why?
Following US sanctions, Huawei has seen its consumer business curtailed globally. However, the report also mentions networking activities, which have also declined since then.
Downsizing and moving to an active, more responsive office would help the Chinese company save time and money. Additionally, it will help Huawei focus on markets with active demand rather than where its shares have fallen sharply.
These are the key story points and now let’s dive into the report.
Whole story :
A giant report composed by Politico featuring various internal Huawei officials and executives on how the company is reducing activity across Europe.
He also mentions Huawei founder Ren Zhengfei’s past speech on some words including survival and hard work. These have been heard before.
There’s an explanation of how CFO Meng Wanzhou’s case, the ongoing Russia-Ukraine war, and the recession have wreaked havoc on the Chinese tech maker.
According to the information, Huawei is currently dividing Europe into two markets: Western Europe, run from Dusseldorf; and Eastern Europe and the Nordics, with a senior manager based in Warsaw.
Interestingly, this indicates that Huawei is considering moving all of its operations and headquarters to Düsseldorf.
A Huawei Europe spokesperson said the restriction will help create more synergies across European business operations. It will also bring more value directly to Huawei customers in Europe.
For now, Huawei has about 12,000 employees and the spokesperson confirmed that these people will work efficiently and stably for the company.
Instead of Europe, Huawei will drop part of the Five Eye in the market. It is a security group made up of the United States, United Kingdom, Canada, Australia and New Zealand. These countries have either barred Huawei or barred the company from participating in government or private network contracts.
Still, Huawei sells consumer products such as smartphones, smartwatches, tablets and other devices.
To mix together:
To clarify, Huawei owns various businesses including individuals and businesses. Therefore, Huawei runs these two different businesses in different markets based on its dominance in this area.
The report mainly targets Huawei’s business activities and their reduction after the US ban. However, this does not shine so much light on the consumer sector.
China:
Yes, Huawei focuses more on its territory due to Huawei’s popularity in the market. Therefore, exiting the rebound move will make no sense.
Huawei’s future in Europe:
The report contains a lot to read, if you are interested we encourage you to do so. Similar to the above, we believe that the office and workforce restructuring will enable Huawei to work efficiently with less expense.
Thus, Huawei will continue to operate in Europe and bring consumer devices such as tablets, smartwatches, headphones and computing devices to global consumers.
