ZTE to cut 3,000 jobs in Q1 - report

Monday 9 January 2017 | 08:05 CET | News

ZTE wants to eliminate 5 percent of its global workforce, or around 3,000 jobs by the end of the first quarter, Reuters reported, with sources saying the cuts include a fifth of positions in its handset business in China. The handset operations will lose 600 jobs, or 10 percent of the total, with the cuts concentrated in China. Cuts in the handset business in China will go beyond 20 percent," said a senior executive briefed on the lay-offs. A local manager in one of the company's overseas branches said a 10 percent quota was given to shed staff in his department by the end of January. ZTE declined to comment.

ZTE is the only Chinese smartphone vendor with a meaningful presence in the US, where it has a 10 percent market share. The US Commerce Department first announced in March that it would impose a ban on exports by US companies to ZTE for allegedly breaking Washington's sanctions on sales to Iran. The ban has not yet come into effect following a series of reprieves.

ZTE chairman Zhao Xianming said in his New Year speech to staff that the company, which has annual sales of more than USD 15 billion, had "encountered its biggest crisis in its 31 year history", according to a transcript on the company’s official WeChat account.

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