"The company is facing a live-or-die moment," Ren, a former Chinese army officer, said in the memo, which was seen by Reuters. Huawei
confirmed the contents of the memo.
"If you cannot do the job, then make way for our tank to roll; And if you want to come on the battlefield, you can tie a rope around the 'tank' to pull it along, everyone needs this sort of determination!"
Huawei is a key theme in a broader, year-long US-China trade war, with Washington slapping it with the trade ban in May citing national security risks. Huawei, however, posted a 23% revenue jump in the first half, helped by strong smartphone sales in its home market.
Ren said in the memo, "In the first half, our results looked good, it is likely because our Chinese clients were sympathetic and made payments in time, the big volume made cash flow look good, this doesn't represent the real situation." But he expressed confidence in Huawei's full-year results and said it needs to "spend the money and solve the production continuity issue" by ramping up strategic investment on things including production equipment.
According to the memo, Huawei, which employs nearly 190,000 people around the world, is reforming its operation globally by granting more power to the frontline, cutting out reporting layers and eliminating inefficient posts.
"In 3-5 years time, Huawei will be flowing with new blood," Ren said. "After we survive the most critical moment in history, a new army would be born. To do what? Dominate the world," Ren said.
While Ren said in June the ban was worse than expected and that Huawei's revenue may stay flat in the next two years, in the memo he called on staff to try their best in meeting the sales target outlined at the start of the year before the ban - which was to grow its revenue to around $125 billion from more than $100 billion in 2018.
He also warned of cash flow risk if receivables are not paid in time. He asked staff to be conservative in ensuring dues were paid in time by clients, because otherwise the lack of liquidity could be fatal to the company.