(ATF) Chinese telecom gear maker Huawei Technologies does not have plans to cut jobs and business is going on as usual at its centres in India, a source close to the matter told Asia Times Financial.
This news emerged amid media reports that the company has cut its India revenue target for 2020 by up to 50% to $350-$500 million and downsize its staff by 60-70%. The company currently has around 700 employees excluding those employed at its research and development facility in Bengaluru (formerly Bangalore), according to media reports.
A spokesman for Huawei said: ”We do not comment on market speculation. Huawei has been a part of Indian ICT ecosystem for the past 20 years focused on building a better connected India. We continue to work closely with all our customers in the country.”
India’s relations with China have been strained following a border clash in the Himalayas last month in which 20 Indian soldiers were killed.
India, which recently banned dozens of Chinese apps in the country, including the popular TikTok video app, has not yet made a call on Huawei after allowing the Chinese telecoms company to participate in trials for 5G networks.
US Secretary of State Mike Pompeo said at a recent business conference that “India has a chance to move supply chains away from China and reduce its reliance on Chinese companies in areas like telecommunications, medical supplies and others.”
But the Indian economy has been hit hard by the coronavirus epidemic, with 1.44 million cases reported and more than 32,000 deaths.
The Financial Stability and Development Council warned last Friday that the ratio of bad loans in the banking system could pass 12.5% by March.
So, the Modi government probably wants to limit the impact of recent calls for a boycott of Chinese goods, because of the recent border clash.
India is also the world’s main generic drug supplier and depends on raw materials from China for almost 70% of its medicines.
Huawei's R&D centre in Bengaluru was set up back in 1999 and is now the largest of all the company's research centres.
A Huawei spokesman said the company has 5,575 employees in its offices in New Delhi, Mumbai, Chennai and 14 other regional areas.