Reuters today quoted several senior executives from ZTE as saying that ZTE will lay off about 3,000 people, one-fifth of which will come from the underperforming mobile phone business. According to the news, ZTE currently has 60,000 employees worldwide, and this time it will lay off about 5%. Among them, the global mobile phone business unit will lay off 600 people, accounting for 10% of the total number of employees in the mobile phone department. One executive said: "The proportion of layoffs in China's mobile phone business will exceed 20% and will be completed in the first quarter of this year."
A manager of ZTE’s overseas branch of the mobile phone business said that his department was required to lay off 10% of staff by the end of January this year. The manager said: "Some employees have also been named to be cut because they have tried to apply for competitor Huawei and are considered 'unstable factors'."
ZTE is the only Chinese manufacturer with a significant share of the US smartphone market. At present, ZTE's share of the US smartphone market is about 10%, which is the fourth largest manufacturer.
In March last year, ZTE was punished by the US Department of Commerce for allegedly violating US export control policies against Iran, restricting ZTE’s suppliers in the United States to export products to ZTE. However, the US Department of Commerce has extended the temporary export license granted to ZTE to February 27, 2017.
However, this uncertainty has affected ZTE's business performance. According to IDC data, ZTE’s global smartphone shipments last year fell by 36.5% compared with 2015.
Zhao Xianming, chairman of ZTE, told employees this year that ZTE is experiencing the biggest crisis in 31 years.
A manager of ZTE’s overseas branch of the mobile phone business said that his department was required to lay off 10% of staff by the end of January this year. The manager said: "Some employees have also been named to be cut because they have tried to apply for competitor Huawei and are considered 'unstable factors'."
ZTE is the only Chinese manufacturer with a significant share of the US smartphone market. At present, ZTE's share of the US smartphone market is about 10%, which is the fourth largest manufacturer.
In March last year, ZTE was punished by the US Department of Commerce for allegedly violating US export control policies against Iran, restricting ZTE’s suppliers in the United States to export products to ZTE. However, the US Department of Commerce has extended the temporary export license granted to ZTE to February 27, 2017.
However, this uncertainty has affected ZTE's business performance. According to IDC data, ZTE’s global smartphone shipments last year fell by 36.5% compared with 2015.
Zhao Xianming, chairman of ZTE, told employees this year that ZTE is experiencing the biggest crisis in 31 years.
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