The Shenzhen-based telecoms gear maker, is reportedly laying off about five per cent of its 60,000 strong global workforce.
Owing to dropping market share, Chinese telecom equipment maker, ZTE, is apparently looking to cut down on its workforce. The company is facing US trade sanctions that could severely disrupt its supply chain, which is why it is slashing about 3,000 jobs, including a fifth of positions in its struggling handset business in China.
The Shenzhen-based telecoms gear maker is reportedly laying off about 5 per cent of its 60,000 global workforce. Its global handset operations will reportedly shed 600 jobs, or 10 per cent of the total, with the cuts concentrated in China, where it has been losing market share.
Seemingly, cuts in the handset business in China will be beyond 20 per cent and are scheduled to be completed within the first quarter.
The air of uncertainty hanging over the company weighed heavily on its business last year, with its worldwide smartphone shipments falling 11.8 per cent compared with 2015.
Chairman of the company, Zhao Xianming, had mentioned recently in his New Year speech to the staff that the company, which has annual sales of more than $15 billion, had undergone its biggest crisis in its 31-year history.
He also mentioned that in 2017 the businesses that don’t fit the company’s strategic direction or with low output performance will be shut, suspended, merged or reconfigured, improving the company’s core competitiveness.
Reportedly, the company also created four new senior vice president positions in charge of investment, internal audit, compliance, and tax, respectively.