12:00 GMT +324 September 2019
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    Huawei founder Ren Zhengfei speaks during a roundtable at the telecom giant's headquarters in Shenzhen

    Huawei CEO Ren Zhengfei Tells His Employees Company Is Facing ‘Life or Death Crisis’

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    Chinese tech giant Huawei is facing a “life or death crisis” amid continued pressure from the US government, its founder and CEO told employees in a memo distributed among the networking division on Wednesday.

    Ren, who is well-known for using military language in his communications with employees, described the company’s current situation as a “battle” while laying out the strategy for Huawei going forward, according to a memo obtained by CNBC.

    “Now that the company is at a life or death crisis, our first priority is to encourage all crew to make contributions, and the second is to choose and promote talents, to add ‘new blood’ to our system,” Ren said, according to a CNBC translation of the memo. He said there will be “new blood” in the company in three to five years.

    The Huawei boss laid out plans to bring more efficiencies to the organization, including simplifying the reporting structure, cutting down on surplus staff, axing repetitive jobs and moving managers to other positions as required.

    He also emphasized the importance of paying attention to the quality of the contracts they are signing with customers, ensuring Huawei is paid on time and does not suffer any cash flow issues.

    Ren added that Huawei would also accelerate the purchase of important equipment in order to meet customer demand.

    The memo came after the US administration extended a reprieve for the telecommunications company for 90 days on Monday, allowing US businesses to sell specific products to Huawei during this period.

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