Tech-giant Huawei giving employees bonus for coping with US sanctions

HUAWEI is paying its employees bonuses totaling more than US$285 million as token for helping the Chinese tech giant cope with US sanctions that threatened its smartphone and other businesses.

Huawei scrambled to remove US components from its products following curbs announced in May on access to American technology after Washington accused the company of being a security risk.

It has unveiled a smartphone operating system it said can replace Google’s Android if necessary.

Some 90,000 employees will share a two billion yuan ($285 million) bonus, or about 22,000 yuan ($3,100) each, according to a company announcement circulated Tuesday, Nov. 12, 2019, on social media.

In addition, Huawei’s full 180,000-member workforce will receive an additional month’s salary.

Huawei Technologies Ltd. confirmed in a written statement the document was genuine but said it had no comment.

The bonuses are to “thank you for your efforts” since the announcement of US sanctions, the announcement said.

Huawei, China’s first global tech brand, is the biggest global maker of network gear for phone and internet companies and the number two smartphone brand.

The company denied US accusations that it is a security risk and might facilitate Chinese spying.

Washington has postponed enforcement of the curbs and the US officials said some sales will be permitted. But suppliers of processor chips and other vendors that depend on Huawei for billions of dollars in annual revenue still are waiting for licenses.

The larger bonus to 90,000 employees goes to people who work in chip production, research and development and manufacturing-related jobs. Those units have been most affected by efforts to overhaul Huawei’s products.

Huawei can keep using Android in its smartphones but will lose access to Google’s music, maps and other services.