Huawei Fights Back Australian Government, Cut Off 100 Australian Employees

Har Devarukhkar - Sep 05, 2019


Huawei Fights Back Australian Government, Cut Off 100 Australian Employees

Huawei decided to shed 100 jobs out of its workforce in Australia.

Huawei has been abandoned by joining 5G activities in Australia since last August due to the failure in lobbying a change for it there. As a result, the telco kit provider sheds 100 jobs out of its workforce in Australia.

According to a letter sent to AMTA - The Australian Mobile Telecommunications Association, the Chinese giant implied that in the coming two or five years, the number of employees who likely to lose their jobs might increase to more than four hundred people if Australia still blocks its 5G telco equipment.

Picture1
5G equipment of Huawei is banned from Australia, which is a big loss to this tech giant

In the announcement declaring that the government’s decision has upset this Chinese tech firm, it also published that Huawei is not one of AMTA’s members anymore. AMTA was said to keep silent about the actual influence of the Australian 5G ban even though Huawei is a part of this organization, which makes this Chinese company extremely disappointed.

Along with leaving the AMTA, Huawei also ends its role in the phone recycling project of this association. The company is looking for other corporations to collaborate alongside.

Following the Chinese tech firm’s prohibition, TPG also stops its mobile network rollout. It seems like using different equipment vendors won’t be commercially feasible. Therefore, it led TPG into an accounting hit costing nearly AU$230 million. The biggest consequence of the act is the AU$92-million decrease in TPG’s untouched spectrum licenses. This cost was totally out of TPG’s control.

Picture2
The United Kingdom is still wondering if it should abandon Huawei equipment

In comparison to Australia, Huawei has a better fortune in the United Kingdom market. Even though its 5G equipment was reported to have some critical flaws while working, it has been used by numerous UK telcos. However, the UK’s government is still considering whether to block the Huawei gadget from the country’s 5G network or not. Until now, Australia is the very first country announcing the official ban on this Chinese telco.

Tags

Comments

Sort by Newest | Popular

Next Story