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The cold wind hit, shivering, Huawei finally shouted the slogan of "survive". When the crisis comes, none of us can run away.
On August 22, Huawei founder Ren Zhengfei published an internal article "The entire company's operating policy must shift from the pursuit of scale to the pursuit of profits and cash flow." The article emphasized that survival will be the most important agenda, and edge businesses will shrink and close across the board. Narrow the front line and find a way to get through three difficult years.
The following is "The entire company's operating policy must shift from the pursuit of scale to the pursuit of profits and cash flow" full text:
Huawei was founded in 1987 and started in the communications business. The last thirty years have also been three decades of rapid development in the communications industry. Lei Jun once said: "Standing at the forefront, even pigs can fly." Huawei has chosen the right industry, and under the conditions of the right time, place and people, We do not deny Huawei's efforts and strength to become the first in China and among the top three in the world, but it is more about the current situation. It is this era that has made Huawei successful. However, success is also a failure. When the situation turns sharply, Huawei begins to face Existential crisis.
In 2018, the real estate leader Vanke , which was prepared for danger in times of peace, was the first to propose "survive". In 2018, it was also the year when the United States began to sanction ZTE. , ZTE, as the second largest company in the communications industry, was finally subdued and has been in decline ever since. In short, 2018 was a turning point. Almost all the problems that occurred in and after that were related to the United States, such as the sluggish manufacturing industry, sluggish real estate, and aging population.
It has been 5 years. It is only now that Huawei has become aware of the crisis and put forward a plan to survive first. It is a bit of hindsight. It stands to reason that when the United States sanctioned ZTE in 2018, Huawei should have been mentally prepared. At that time We should give up our illusions, dig deep and accumulate grain , , and take measures to deal with the crisis of survival.
A grain of ashes in the era is like a mountain when it falls on an individual. Similarly, it is also a mountain when it falls on an enterprise. Ren Zhengfei mentioned in the article "the crisis in the next three years". I think he is still a little optimistic. Five years Previously, Huawei's operating revenue from overseas markets accounted for half of its total revenue. But now the overseas market has almost been wiped out. In the next three years, it will be difficult for overseas markets to come back to life, and the domestic market is also not optimistic. Therefore, the crisis may not last more than three years.
As we all know, 2019 was also an unusual year. There was a popular saying that year: "2019 was the worst year in the past ten years and also the best year in the next ten years.". At that time, I was young and ignorant, so I took this The sentence was taken as a joke, but looking at it now, it really hit the mark.
Internet giants such as Alibaba , Tencent and Baidu have long begun to lay off employees. In order to survive, companies are not ashamed to lay off employees. At present, in addition to honor (including corresponding employees) were packaged and sold, there were no rumors of layoffs or salary cuts, which is indeed admirable. However, Huawei’s net profit in the first half of 2022 was only 15 billion, and its net profit margin was only 5%, which is already less than The traditional machinery industry is still low. There is really no need to pretend to be fat. When layoffs are needed, lay off workers, and when wages are cut, wages are cut. As long as workers are laid off or wages are reduced by 10%, net profits can be doubled.
The situation is very serious and there are many difficulties, but I believe that Huawei will see a rainbow after the storm.
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