China-based ZTE Corp has been reporting decline in revenue in the India region, which has already prompted the telecom gear maker to slash its workforce in the country. And now Economic Times has reported that ZTE is looking to close its research and development (R&D) operations in the country. The company has already scaled down its service business.
Apart from that, ZTE is also looking to close down businesses and offices in select countries which are not viable in the current economic climate. The company had recently talked about the possibility of resorting to contract manufacturing, which is being followed by ZTE in Europe and Brazil as of now.
ZTE’s major functioning in the Indian market happens with LTE network for Bharti Airtel and BSNL’s cell network across the country. Last year, ZTE recorded net loss of $279.2 million till August and chances are this may have grown by the end of year.
Adding up to this, ZTE has asked most of its Chinese expats in India to move back to its native country or other global market where ZTE is present.
Recently, it was reported that ZTE was being scrutinised by the US Intelligence Committee on security issues in relation with its telecom gear products available across different markets.
