What you need to know

  • Huawei founder Ren Zhengfei recently sent a memo to his employees outlining the company's "battle mode" plan.
  • The company has less than 90 days to conduct trade with companies in the U.S.
  • "After we survive the most critical moment in history, a new arm would be born. To do what? Dominate the world."

To say that 2019 has been rough for Huawei would be the understatement of the century. The first half of the year saw the company hit with privacy concern after privacy concern, ultimately resulting in a trade ban from the United States. The U.S. government recently gave Huawei a 90-day extension that allows it to continue trading with U.S. companies, but once those 90 days are up, Huawei's future continues to be uncertain.

In light of all this, Huawei founder Ren Zhengfei recently sent out a memo to his employees to outline the company's "battle plan" as it gets ready to fight through its impending "live-or-die" moment.

The letter reads:

The company is facing a live-or-die moment. 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!

On that note, Zhengfei suggested that employees need to seek out new projects and innovation if they want to continue working at the company and get their usual pay.

They either form a 'commando squad' to explore new projects -- in which case they could be promoted to company commander if they do well. Or they can find jobs in the internal market. If they fail to find a role, their salaries will be cut every three months.

Despite China's ongoing trade war with the United States and the initial effects of its ban, Huawei still saw a revenue increase of 23% during the first half of 2019 — largely due to excellent sales of its smartphones in China.

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.

The letter continues:

In 3-5 years time, Huawei will be flowing with new blood. After we survive the most critical moment in history, a new army would be born. To do what? Dominate the world.

As Huawei aims to make the best of its situation, Zhengfei is urging his employees to meet sales targets and keeping a close eye on cashflow.

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