Huawei Cloud Unveils Major Restructuring to Boost Profitability
Huawei Cloud has revealed a significant organizational restructuring, with the aim of improving profitability. The company's cloud division has posted losses in recent years, and the changes are expected to impact several key teams and departments.
Huawei Cloud CEO Zhang Ping'an has announced the restructuring, which will focus on a '3+2+1' business strategy. This involves prioritizing investment in artificial intelligence, streamlining non-core businesses, and enhancing operational efficiency. The specific teams and departments affected have not been named, but it is understood that core units such as the product department and the public cloud services department may be impacted. This could potentially affect thousands of employees.
The restructuring comes after Huawei Cloud posted losses in 2024. The company has set a goal to achieve profitability this year, and the changes are seen as a step towards this objective.
Huawei Cloud's restructuring is a significant move aimed at improving the division's financial performance. While the details of the changes remain unclear, the focus on AI and operational efficiency suggests a shift in the company's strategic priorities. The impact on employees is yet to be fully understood, but the changes are expected to be substantial.
