Huawei Cuts 1000 Aussie Jobs Amid US Trade Tensions
Huawei is set to cut over 1,000 jobs from its Aussie subsidiary, as the Chinese tech giant continues to wrestle trade tensions with the United States and other Western governments.
Reported in an AFR exclusive, Huawei has slashed over $100 million in research and development from its Australian operations, with job cuts set to exceed 1,000 by next year.
The news comes after the Australian government issued a ban on Huawei’s participation within the local 5G build.
The United States has continued to tighten trade sanctions with Chinese entities such as Huawei, including barring its access to Google’s Android.
Huawei Chief Corporate Affairs Officer, Jeremy Mitchell, informed the AFR that global restrictions have significantly hampered revenue – potentially dipping to $200 million in the next few years.
The news comes as Chinese-owned short-form video sharing app, TikTok, continues to wrangle a deal with Oracle and Walmart, after the Trump administration mandated its sale to an American company.
Huawei consumer boss, Richard Yu, has reaffirmed the company’s commitment to its smartphone division, and is set to launch to handsets with its Harmony operating system next year.
Supply chain sources claim both Samsung and Apple are gearing to snare some of Huawei’s market share previously held in the premium smartphone market.
Despite lobbying from component makers (such as Qualcomm) to service Huawei, the Chinese giant’s Harmony OS handsets seek to prove self-reliance despite sanctions on key parts and software.