“I was 'optimized' in December, without any compensation, only cold notice,†Yu Tao, a sales manager hired by Nanning’s Nanning office, told Economic Observer that he’s identity is ZTE’s outsourcing. The nature of the company's recruitment, he did not want to get compensation.
After massive layoffs in 2012, ZTE ushered in a new round of layoffs. The number of people who were disclosed was about 3,000 employees. However, according to the experience of Yu Tao and his colleagues, it is obviously more similar to the employment of outsourcing. The proportion of people being laid off is very large. An industry insider who understands the status quo of ZTE also revealed to the Economic Observer that not only layoffs but also senior officials have changed their blood. It is a feeling that ZTE’s actions this year are quite big.
In the past few years, ZTE held a good card in the mobile phone business. Now, in the past few years, it has become a card with the same "chicken rib". Why did ZTE smash a good hand? Coincidentally, ZTE’s annual financial report shows that under the revenue scale of ZTE’s tens of billions of dollars, its operating profit is relatively meager. In terms of the overall performance of operators, government and enterprises, and consumer business, this small semiconductor company founded in Shenzhen is When it grew into a telecom giant, it also ushered in a crucial moment when "the elephant can continue to dance."
LayoffsBefore and after Yu Tao was "optimized", he found that there were about 45 colleagues with similar identities, including retail promoters, clerk who managed promoters, and 34 of them were "optimized" for reasons of "non-compliance". "These people are all signed contracts with Xi'an Zhongxing Jingcheng Technology Co., Ltd., and there are 11 ZTE official staff in the Nanning office. About 2 or 3 people have been "optimized". The official staff of this office is optimized. The ratio is around 20%. It is understood that ZTE's terminal business is mainly mobile phone business.
The news of layoffs has been traversed since the early fermentation. Last November and December of last year, 40% of ZTE’s layoffs were circulating in the market. Baidu Post Bar, Zhihu and other websites have many posts asking ZTE layoffs, and later Economic Observer In an interview with ZTE, ZTE’s official reply to the Economic Observer was that there were some adjustments, but there was absolutely no layoffs. On the evening of January 6, foreign media "Reuters" quoted many ZTE executives as saying that ZTE will lay off about 3,000 people, one-fifth of which will come from the underperforming mobile phone business.
However, ZTE (14.900, -0.27, -1.78%) responded by saying that the annual turnover rate is about 5% to 8%, which is normal.
The layoffs will be completed in the first quarter of this year, which means that a group of people will lose their jobs and re-enter the job search before and after the Spring Festival.
A person who resigned from ZTE a few years ago and has maintained close ties with ZTE internally said to the Economic Observer that it is understood that the number of layoffs varies from department to department, with some 30% and some 10%. Or 2n+1 compensation, and the staff for three or five years is n+1.
Compared with the big layoffs in 2012, the company has reduced the number of layoffs and focused on strategy. At the end of 2012, the total number of ZTE employees decreased from nearly 90,000 to 78,000, and the number of employees was reduced to more than 11,000. 13%, cutting a lot of fresh graduates who have just recruited, is also one of the main reasons for the dismissal of the layoffs in the same year. Many insiders revealed that many layoffs were held in ZTE for 7-10 years. And ZTE officials recently told the Economic Observer that not only did not lay off employees, the company still recruits a lot of employees from outside, which shows that this is precisely the company's efforts to achieve "improvement" of employees' work is not up to standard. purpose.
It is noteworthy that the focus of the layoffs is the terminal business unit that operated independently several years ago, and the mobile phone business bears the brunt. The global mobile phone business is planned to cut 600 employees, equivalent to 10% of the company's mobile phone business. Four or five years ago, ZTE was the world's fourth-largest smartphone seller. The mobile phone business accounted for more than one-third of the company's revenue, and announced that in three years, the proportion will increase to 50% in 2015. In August last year, ZTE told investors on a network platform that “domestic mobile phone business accounts for a small proportion of the company’s overall revenue, and the company’s main revenue comes from carrier network equipment.†This attitude is very different, or The pressure of the mobile phone business is losing ground.
Carrier dependencyIn 2010, Apple opened the "Pandora Box" for smartphones. In the same year, Xiaomi was founded. In the early days of the smartphone era, ZTE relied on the operator channel, and the proportion of mobile phone-based terminal services was on the rise. According to the financial report, in the four years from 2009 to 2012, ZTE’s annual terminal business income was about 13 billion yuan, 17.9 billion yuan, 26.9 billion yuan, and 25.8 billion yuan. The terminal business revenue accounted for the company’s total revenue. It is 22%, 26%, 31%, and 31%. In 2011, ZTE’s mobile phone business grew rapidly, with a year-on-year increase of more than 50%. Even more confident about ZTE, Gartner, a mobile phone market research organization in 2011, released a report on the sales of global mobile phone manufacturers in the fourth quarter of the year. The report shows that ZTE has surpassed LG in the sales list and become the world's fourth largest mobile phone manufacturer. And Huawei ranked sixth in the back.
In 2012, about one-third of the total revenue of the mobile phone business received unprecedented attention from ZTE executives. They also saw opportunities for the development of mobile Internet. According to IDC data from market research institutions, ZTE’s mobile phone shipments totaled 65 million units in 2012. Up to 35 million units, ZTE’s hand held a good brand of mobile phone business. The former vice president of ZTE, He Shiyou, said in Milan on October 18 that he hopes that the mobile phone business will account for 50% of the group's revenue in the next three years (until 2015).
However, former ZTE executive vice president, terminal CEO and chief experience officer Zeng Xuezhong said in May last year that the previous ZTE mobile phone "missed the model and misunderstood the times."
In the critical moment of the development of the smartphone market around 2012, ZTE’s main communication equipment business suffered a major setback in the United States. At that time, the US Congress issued a report saying that ZTE and Huawei Technologies Co., Ltd. pose a potential threat to US national security. It is a concern that the equipment they provide may be used to steal US intelligence. Both ZTE and Huawei denied the above allegations. Moreover, in 2012, ZTE had its first loss since its listing, with a loss of 2.841 billion yuan. Profit pressure has become one of the main reasons for the direction of the mobile phone business around the time.
After the massive layoffs in 2012, at the end of 2013, in order to strengthen the terminal, ZTE was divided into three business divisions: terminal, government and enterprise, and operator business on the last day of the year. Zeng Xuezhong also took over the position of ZTE terminal on the same day. Business, after which ZTE launched a wave of new machines, and eventually relied on excessive channel of operators and launched a large number of uneven quality mobile phone products in the country, so that ZTE, which is one step away from the global mobile phone throne, is gradually Going farther. Data show that in 2013 and 2014, ZTE's terminal revenues were 21.7 billion yuan and 23.1 billion yuan, respectively. Compared with 2011 and 2012, there was no increase or decrease.
Contrary to this, in 2011, Huawei abandoned the OEM and low-end customized business model, embarked on the mid-to-high-end line of its own brand, and launched the annual flagship P7, Glory 6, Mate7 and other products, which was a great success in the terminal market. Although ZTE has also launched mobile phones such as V880, V5Xmax and GrandS, it seems that there is no bright eye. From 2009 to 2014, the gap between ZTE and Huawei in the terminal business rapidly expanded from 11.546 billion yuan to 51.98 billion yuan in six years.
Interestingly, in 2012, 90% of ZTE's mobile phone business revenue came from the operator market, and the open market channel was 10%. As of 2016, the expectation of 40% of open market channels has not been fully realized.
Pain of operating profitYu Yifang, former general manager of ZTE Terminal China, mentioned in an interview with the Economic Observer in early 2016 that there were many major events in the terminal field in 2014. Motorola’s mobile phone owner Lenovo, once the mobile phone boss Nokia device was acquired by Microsoft... In the year, ZTE conducted an in-depth and thorough reflection, and concluded that B2B must focus on B2C, so the products behind ZTE are basically considered in two ways: B2B2C and B2C, especially the composition of B2C is getting bigger and bigger. .
At the same time, since 2014, ZTE has cut more than 300 mobile phones to only three series of mobile phones last year, including Nubian, a sub-brand independently operated in 2012. After three years of development, it realized Nubia in 2015. The company operates independently, but under frequent action, the results are minimal.
ZTE, which has undergone “big surgery†at the end of 2013, has not yet caught up with the pace of industry development. From 2015 to now, the Internet model has been diverted and the mobile phone field has re-entered the store era. Last May, data showed that in the first quarter of last year, it almost won the domestic market. The first Xiaomi fell out of the top five in global sales. Huawei relied on years of technology accumulation and finally reached the third place in the world in terms of sales in the first quarter. The OPPO and vivo were sunk to three with powerful TV marketing and offline channels. In the fourth-tier city market, and relying on process design and mid-range positioning, it has become a “domestic upstart†beyond the success of Xiaomi. In the top ten global mobile phone sales, ZTE ranked eighth, far behind Huawei, the third-ranked company.
According to IDC data, ZTE’s global smartphone shipments last year fell by 36.5% compared with 2015.
ZTE’s organizational structure and high-level adjustments seem to be too frequent. On April 5 last year, ZTE announced that Zhao Xingming, executive vice president and CTO of ZTE, succeeded Hou Weigui as the chairman of the seventh board of directors of the company and concurrently served as president. Shi Lirong, the former president of the company, no longer holds the position of president.
In October last year, ZTE issued an internal staff adjustment notice, and Yin Yimin, executive director of ZTE Corporation, was appointed as the head of the mobile phone business. In November, ZTE announced again that Yu Yifang will no longer serve as the general manager of ZTE Terminal China. The position was temporarily taken over by Bai Bo, vice president of ZTE Corporation. ZTE’s sales in 2015 were 56 million units, but only 15 million units were contributed to China’s base. Last year, ZTE’s domestic market and brand share have fallen out of the top ten.
The problem is not limited to the mobile phone business. Although ZTE’s revenue exceeded 100 billion yuan for the first time in 2015, its operating profit of only 320 million yuan is not directly proportional to it. According to the company’s annual financial report, this is not a case. ZTE Corporation According to the performance data, the operating income from 2012 to 2014 was about 84.2 billion yuan, 75.2 billion yuan and 81.5 billion yuan respectively, and the operating profit data was about -500 million yuan, 1,500 million yuan, 60 million yuan in succession. In the carrier business, ZTE is better than Huawei. In recent years, in the carrier business, government and enterprise, and consumer business, the embarrassment has not been smooth.
In March last year, ZTE was punished by the US Department of Commerce for allegedly violating US export control policies against Iran, restricting ZTE’s suppliers in the United States to export products to ZTE. However, the US Department of Commerce has extended the temporary export license granted to ZTE to February 27, 2017. ZTE is the only Chinese manufacturer with a significant share of the US smartphone market. At present, ZTE's share of the US smartphone market is about 10%, which is the fourth largest manufacturer. However, after more than a month, once the export control measures are implemented, the import of chips and other components of the terminal business such as ZTE will be greatly affected, which will be directly transmitted to the downstream sales of finished products, affecting its market share in the United States. And this is in the case of Huawei's mobile phone to increase its efforts to enter the United States.
Interestingly, Reuters reported that a manager of ZTE’s overseas branch of the mobile phone business said his department was asked to lay off 10% by the end of January this year. The manager said: "Some employees have also been named to be cut because they have tried to apply for competitor Huawei and are considered 'unstable factors'."
The sales of mobile phones have dropped sharply, the US restrictions on export measures are coming soon, and the communication equipment business is coming to the ceiling. All this has forced ZTE to once again take up the layoffs for "broken arms to survive" and let the 100 billion elephants dance.
(should be requested by the interviewer, Yu Tao is a pseudonym)
Beginner Dry Herb Vaporizers,Hookah Dry Herb Vaporiser,Tobacco Dry Herb Vaporiser,Portable Dry Herb Vaporiser Pen
END GAME LABS , https://www.eglvape.com