Waging a tech war across the world, Chinese tech giant Huawei has lowered its revenue target for 2020 by 50 percent in India and will be laying off more than half of its staff in Indian offices.
Huawei has projected its revenue for 2020 at $350-$500 million as opposed to its old projection of $700-800 million. The earlier revenue target was declared before the standoff between India and China, reported The Economic Times.
In an attempt to remain afloat, the company also slashed the requirement of staff by half. However, those in research and development and the Global Service Centre will not be touched as of now.
The move comes as India, the third-largest economy, joined the anti-Huawei camp with the US and UK over security issues. The country also banned 59 Chinese apps following the border standoff in Ladakh, where 20 Indian soldiers were killed by the Chinese Army last month.
The two largest players in India — Bharti Airtel and Vodafone Idea — source a huge chunk of their equipment requirements from Huawei. New Delhi has asked the telecoms to use "made in India" rather than Chinese equipment for 4G mobile networks. The Chinese firm will also receive major losses in business as the Indian government has now amended the General Financial Rules, 2017 to impose curbs on public procurement from bidders of countries that share a land border with India, citing defence and national security concerns.
The India unit of Huawei employs about 700 people on its rolls and hundreds through third-party firms, according to the report.
In the past week, Huawei has faced setbacks in the UK and France, as both countries made U-turns and restricted access to Huawei's 5G technology due to national security concerns.