Thursday, February 26, 2009

Huawei Likely to Fire 400 Employees

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There is a strong rumor in market that Huawei Pakistan is going to fire as many as 400 employees in coming month.

We were told that job cut is due to delay in 3G and increasing operating expenses. Huawei had invested heavily for 3G that was expected earlier this year. However, 3G’s speculated delay that may turn out to be longer than couple of quarters, is apparently the root cause of this speculated lay off.

On other hands, multiple inside sources from
Ufone have confirmed us that distance between Huawei and Ufone is increasing due to variety of reasons. Reportedly, the contract between Ufone and Huawei may not last long as the differences have reached a point of no return.

When contacted senior spokesman of Huawei Pakistan, he did not respond to any question and said that he is in a meeting in Lahore. Later on my repeated tries to establish communication with him didn’t succeed. At last I left him an SMS that he can contact me back regarding said query, which he has not responded till now.

Update: Huawei Spokesman just called me and said that in this tough time of recession, everyone including USA, UAE and global markets are shedding their work force; furthermore, projects with Ufone have been completed - now if Ufone is not expanding its network than what can we do?

On other hands, when we contacted Ufone’s spokesman, he said that he is ignorant of termination of contract between Ufone and Huawei– “company may not make it public, even if it is the case”, added Ufone’s spokesman.

Update (Feb 26th, 6:20 PM): Ufone’s spokesman just called me recorded his viewpoint as following

“Ufone has strong working relation with Huawei Pakistan, and we are as close with Huawei as before”

Reportedly a short listed list of employees has been sent to China for approval as all operations in Pakistan are controled by Huawei Headquarter.

In any case, Huawei Employees who were associated with Ufone project should not expect their best time ahaed.

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