China's Huawei will spend more on production equipment this year to ensure supply continuity, cut redundant roles and demote inefficient managers as its grapples with a "live-or-die moment" in the wake of US export curbs, founder Ren Zhengfei said.
"The company is facing a live-or-die moment," Ren, a former Chinese army officer, said in the memo, which was seen by Reuters. Huawei confirmed the contents of the memo.
If you cannot do the job, then make way for our tank to roll; And if you want to come on the battlefield, you can tie a rope around the 'tank' to pull it along, everyone needs this sort of determination!Ren said in the memo, "In the first half, our results looked good, it is likely because our Chinese clients were sympathetic and made payments in time, the big volume made cash flow look good, this doesn't represent the real situation.
"In 3-5 years time, Huawei will be flowing with new blood," Ren said. "After we survive the most critical moment in history, a new army would be born. To do what? Dominate the world," Ren said.