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Wednesday, Dec 11, 2019

Huawei to give staff $286 million bonus for helping it ride out US curbs

The cash rewards are likely to go to research and development teams and those working to shift the company’s supply chains away from the United States, a Huawei spokesman said.

business Updated: Nov 12, 2019 15:14 IST
Reuters
Reuters
Shenzhen, China
Huawei is world’s second largest maker of smartphones.
Huawei is world’s second largest maker of smartphones.(REUTERS Photo)
         

Chinese telecoms giant Huawei Technologies said on Tuesday it will hand out 2 billion yuan ($286 million) in cash rewards to staff working to help it weather a US trade blacklisting.

The world’s largest telecoms equipment provider has said it has been trying to find alternatives to US hardware after the United States all but banned it in May from doing business with American firms, disrupting its ability to source key parts.

The cash is a mark of recognition for work in the face of US pressure, Huawei’s human resources department said in a notice to staff seen by Reuters. It will also double pay this month for almost all its 1,90,000 workers, a company spokesman said.

The cash rewards will likely go to research and development teams and those working to shift the company’s supply chains away from the United States, the spokesman said.

Details of Huawei’s plan were first reported by the South China Morning Post on Tuesday.

Many in the US government believe that Huawei’s equipment, particularly its 5G networks, pose a security risk, because of the company’s allegedly close ties to the Chinese government. Huawei has denied the Chinese government plays any role in its operations.

Although granted reprieves from much of the US exclusion, Huawei had been working to find alternatives after it witnessed the crippling effect of US sanctions on its smaller Chinese rival ZTE Corp in early 2017.

The company is also the world’s second largest maker of smartphones and a surge in shipments of devices helped it to report a 27% rise in third-quarter revenue last month.