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Is Huawei really giving up on Europe?

So, there are reports circulating online that Huawei is ditching Europe. Yes, there are different sides behind this theme and we will tell you long story short.

Huawei leaving Europe?

No, Huawei is not giving in to Europe.

What is happening:

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

why?

After the US sanctions, Huawei has seen its consumer business decline globally. However, the report also mentions the network’s business, which has also declined since then.

Reducing the workforce and moving to an active and more responsive office should help the Chinese company save money and time. Also, it will help Huawei focus on markets with active demand rather than markets where its shares have fallen sharply.

Those were the main points of the story and now, let’s dive into the report.

Full Story:

A giant report by Politico features several Huawei insiders and executives on how the company is reducing its activity across Europe.

It also mentioned the previous speech of Huawei founder Ren Zhengfei on some words including survival and hard work. They’ve already heard it before.

There’s an explanation of how CFO Meng Wanzhou’s case, the current war between Russia and Ukraine, and the recession wreak havoc on the Chinese tech company.

According to the information, Huawei currently divides Europe into two markets: Western Europe, from Dusseldorf; and Eastern European and Nordic countries, with a senior executive based in Warsaw.

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

A spokesperson for Huawei Europe said that this restriction will help bring more synergy across the entire European business process. It will also bring more value directly to Huawei customers in Europe.

At present, Huawei has about 12,000 employees and the spokesperson confirmed that these people will work efficiently and stably for the company.

Instead of Europe, Huawei will give up the market portion of Five Eye. It is a security group consisting of the United States, the United Kingdom, Canada, Australia and New Zealand. These countries have either banned Huawei or restricted the company’s participation in government or private network contracts.

However, Huawei sells consumer products such as smartphones, smartwatches, tablets, and other devices.

mix:

To be clear, Huawei owns many companies including consumer and corporate. Hence, Huawei operates these two different companies in different markets based on its dominance in this field.

The report mostly targets Huawei’s business and its downgrade after the US ban. However, it does not highlight the consumer business much.

China:

Yes, Huawei is more focused on its home country due to Huawei’s popularity in the market. Therefore, letting the retracement move would not make sense.

Huawei’s future in Europe:

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

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