ZTE Pakistan Plans to Downsize by 30 Percent

This is tough time for telecom vendors in Pakistan due to recession and lack of network expansion projects by cellular companies in the country.

It is learnt by Propakistani that ZTE Pakistan, who was once market leader during 2003-05 in Pakistan is now planning for downsize by 30% of its overall headcount.

In year 2003-2005 ZTE Pakistan’s overall headcount was close to 1000 employees on their direct payroll. But after 2005, its market share gradually decreased and in 2009 it is now close to 400-500 employees out of which approx 300 employees are on their direct payroll and remaining are on third party contract through M/S HRS.

When we inquired about current situation from a senior official at ZTE, he was of the view that rumors of downsizing are around, recently – however, nothing has been concrete yet. He said that small scaled movements of employee do happen – but one should not expect massive layoffs very soon.

ZTE official confirmed that there are 850 employees at ZTE Pakistan, including direct and outsourced employees.

ZTE Pakistan has already kept the Pakistani stakeholders silent and the affairs are being directly monitored and supervised by Chinese at the Headquarter in Shenzhen. This downsizing will involve both type of employees i.e. on direct payroll (10-15%) and on third party contract (15-20%).

Now due to recession, ZTE Pakistan is in tough period and payments to the subcontractors are being delayed extra-ordinarily due to financial crisis. In the past ZTE’s main customer was PTCL but now its main customer is Zong (CMPak).