ZTE to cut up to 3,000 jobs worldwide
ZTE is one of the Chinese brands with a significant presence in the US and Europe, but this seems this is not enough to help the company maintain all its current staff. Due to a loss of popularity in its home market and, according to an exclusive report by Reuters, "US trade sanctions that could severely disrupt its supply chain," ZTE is forced to let go around 3,000 employees.
The report mentioned above also reveals that insiders familiar with the matter say ZTE "is axing about 5 percent of its 60,000 global workforce." In China, things are even worse, with cuts that a senior executive of the company revealed to be "beyond 20 percent." According to a ZTE local manager, he has been informed that 10 percent of its staff must go by the end of the month.
ZTE is currently the fourth smartphone vendor in the US, with a market share of 10 percent. However, the US Commerce Department announced a ban on exports by US companies to ZTE for breaking the sanctions on sales to Iran. The ban has not come into effect yet, but if this happens, ZTE's supply chain will take a massive blow.
Contacted by Reuters, ZTE has declined to comment for now. We will get back with details as the story develops.