Huawei is really giving up on Europe?

So, there are reports circulating over the Internet that Huawei is giving up on Europe. Yeah, there are various aspects behind this topic and we’ll tell you the long story short.

Huawei is quitting Europe?

No, Huawei is not giving up on Europe.

What’s happening:

Huawei is about to relocate its workforce and business operations from different European headquarters to a single, effective and better place.

Why?

Following the U.S. sanctions, Huawei saw reduced consumer business globally. However, the report also mentions network business, which has also reduced since then.

Reducing the workforce and relocating to an active and more responsive office would help the Chinese company to save money and time. Also, it’ll help Huawei to focus on markets with active demand instead of the ones where its shares have declined severely.

These were the key points of the story and now, let’s dive into the report.

Full Story:

A giant report composed by Politico featuring various Huawei internal officers and executives on how the company is reducing its activity across Europe.

It also mentions Huawei founder Ren Zhengfei’s past speech over some words including survival and working hard. These were already heard before.

There’s an explanation of how CFO Meng Wanzhou’s case, the current Russia-Ukraine war, and the recession causing mayhem for the Chinese tech maker.

According to the information, Huawei currently divides Europe into two markets: Western Europe, run from Düsseldorf; and Eastern Europe and the Nordics, with a top executive based in Warsaw.

Interestingly, it indicates that Huawei is planning to move all of its operations and headquarters to Dusseldorf.

A Huawei Europe spokesperson said that this restricting will help to bring more synergies within the whole European business operation. It will also bring more value directly to Huawei’s customers in Europe.

As for now, Huawei has around 12000 employees and the spokesperson confirmed that these people will work efficiently and stable for the company.

Instead of Europe, Huawei will give up on the market part of the Five Eye. It’s a security group consisting of the U.S., UK, Canada, Australia, and New Zealand. These countries either banned Huawei or restricted the firm from participating in government or private network contracts.

Still, Huawei is selling consumer products such as smartphones, smartwatches, tablets, and other devices.

Mixing up:

To clarify Huawei owns various businesses including consumer and corporate. Hence, Huawei runs these two different businesses in different markets based on its dominance in that area.

The report mostly targets Huawei’s corporate business and its reduction after the U.S. ban. However, it doesn’t spotlight the consumer business that much.

China:

Yes, Huawei is focusing more on its home ground because of Huawei’s popularity in the market. Therefore, leaving the rebound movement won’t make sense.

Huawei’s Future in Europe:

The report contains a lot to read, if you are interested then we encourage you to do so. Similar to the above, we think that the restructuring of the office and workforce will allow Huawei to work efficiently and effectively with less spending.

So, Huawei will continue to operate in Europe and bring on consumer devices such as tablets, smartwatches, earphones, and computer devices to global consumers.