ZTE Plans to Cut 5% of Workforce Amid Its 'Biggest Crisis in 31 Years'
Yicai Global
/SOURCE : Yicai
ZTE Plans to Cut 5% of Workforce Amid Its 'Biggest Crisis in 31 Years'

(Yicai Global) Jan. 9 -- ZTE Corp. [SHE:000063] plans to lay off 3,000 workers with one-fifth of them in its mobile phone division, Reuters reported. The cuts account for five percent of the total headcount. Chairman Zhao Xianming told employees during his new year address that the company is undergoing its biggest crisis in 31 years.

ZTE's global mobile phone division will lay off 600 employees, mostly in China, in line with the Shenzhen-based company's loss of market share in the country. ZTE's global smartphone shipments slumped 36.5 percent year-on-year, according to tech consultancy IDC.

Last March the company violated the US ban on exports to Iran and American suppliers were prohibited from selling products to ZTE. The situation was compounded by the rise of Huawei Technologies Co., OPPO Electronics Corp., Vivo Mobile Communication Co. and other competitors.

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