Chinese telecom giant Huawei on Tuesday said that it will hand out USD 286 million in cash as bonuses to staff working to help it cope with US sanctions that threaten its smartphone and other businesses.
A company announcement circulated on social media said that 90,000 employees will share USD 285 million, or about USD 3,100 each. Huawei's 180,000-member workforce also will receive an extra month's salary. According to reports, the company in a written response to questions confirmed the document was genuine but said it had no comment.
The world's largest telecom equipment provider said it has been trying to find alternatives to U.S. hardware after the United States banned it in May from doing business with American firms, disrupting its ability to source key parts.
According to reports, the cash is a mark of recognition for work in the face of U.S. pressure. It will also double the pay this month for almost all its 180,000 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.
The announcement told employees the bonuses were to thank them for their efforts since the US curb on technology sales to Huawei. The larger bonus goes to employees in chip production, research and development, and manufacturing-related jobs. The company has overhauled its product line to reduce the use of US components.
Earlier Huawei founder Ren Zhengfei said that he sees the American pressure as just the latest in a string of tests that have hardened him and his company. “For three decades, Huawei has been suffering and no joy,” Ren said in an interview. “The pain of each episode is different.”
Ren and his company already have spent nearly a decade fighting U.S. accusations the company might facilitate Chinese spying. The Trump administration stepped up the pressure this year by imposing curbs on sales of U.S. technology to Huawei and urging European and other allies to shun the company as they prepare to roll out next-generation telecom networks.
The escalating clash with Washington has transformed Ren from an admired but rarely seen businessman worth an estimated $3 billion into one of China’s most prominent figures.
(with agencies inputs)