Feeds

ZTE claims it's hiring, not firing

Mobile giant says rumours are wide of the mark

Intelligent flash storage arrays

Chinese telecoms outfit ZTE has hit back at rumours suggesting it will respond to sliding market share and a scary balance sheet by shedding 12,000 staff. Instead, the company says, we can expect a graduate hiring spree.

The Shenzhen-based firm, which last week warned that profits for the first half of 2012 could fall by as much as 80 per cent year-on-year, sent The Register the following statement:

ZTE is not planning any lay-offs this year and thousands of college graduates will join the company to work in R&D jobs, etc. The company is also committed to building up local employment in overseas markets, and continues to hire experienced local staff. To reinforce the strategy of internationalisation, ZTE is committed to promoting local staff to local management level to serve local markets.

Pretty unequivocal, then, from the world's fifth largest producer of telecommunications equipment.

It had been suggested that the firm has already been forced to undertake three rounds of redundancies and staff recalls from overseas offices since Chinese New Year.

Falling market share in the face of fierce competition, slowing demand and cash flow problems associated with several large, complex projects were given as the major reasons.

Having laid those concerns to rest, however, ZTE still has to deal with a number of potentially damaging investigations into alleged shady business practices.

The FBI is conducting one of these into allegations that the firm illegally sold US technology to Iran and then tried to cover it up.

ZTE refused to comment to The Reg about the investigation, but it appears the Chinese government has now waded into the affair.

Speaking at a Ministry of Commerce press conference on Tuesday, spokeswoman Shen Danyang told reporters, “We hope [ZTE] will receive objective, fair and proper treatment from the US”, according to Reuters.

The investigation comes at a delicate time for ZTE. Like its Shenzhen neighbour Huawei, the firm is trying to convince US lawmakers that its products don’t represent a national security risk to the States.

The US House of Representatives Intelligence Committee is investigating alleged ties with the Chinese government after fears were raised that kit produced by the two telecoms giants could give back door access to state-sponsored snoopers. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.