Huawei Cloud Targets Profitability in 2025 After Restructuring
Huawei Cloud has revealed losses for 2024, with the company now targeting profitability this year. The unit's CEO, Zhang Ping'an, recently unveiled a significant restructuring plan to achieve this goal.
The restructuring, announced last Friday, aims to boost investment in artificial intelligence. Huawei Cloud will adopt a '3+2+1' business strategy, focusing on three core businesses: cloud services, AI, and digital power. Additionally, it will invest in two emerging sectors: intelligent computing and intelligent connectivity, along with one future growth area.
The reshuffle may impact core teams such as the product department and the public cloud services department, potentially affecting thousands of employees. However, the company has not specified the exact number or nature of job changes.
Eric Xu, Huawei's CEO, has taken the helm of the newly created artificial intelligence department at Huawei Cloud. He announced the company's AI roadmap and its leadership in AI computing at the Huawei Connect event in Shanghai last week.
Huawei Cloud's restructuring, driven by a focus on AI and operational efficiency, seeks to turn around the company's fortunes after posting losses in 2024. The '3+2+1' strategy and Eric Xu's leadership of the AI department are key to achieving this year's profitability goal.
