The cuts would included some 600 jobs in its global handset operations, concentrated on a struggling unit in China, where a fifth of positions are set to be axed: "Cuts in the handset business in China will be beyond 20 percent," a source told Reuters.
Another manager said that a list of names who had tried to apply to rival Huawei was circulated for likely cuts.
With a 10% market share (fourth-largest), ZTE is the only Chinese smartphone maker with a meaningful presence in the United States.
Sanctions (related to Iran sales) set to come into effect at the end of February could cripple ZTE's supply chain, with restrictions on component exports from Qualcomm, Microsoft and Intel.
Key telecom patent holders are joining forces, creating a one-stop shop for companies that need to license technology in building a connected future ranging from the "Internet of Things" to connected cars.
A newly formed company, Avanci, incorporates patents of partner firms including Qualcomm (NASDAQ:QCOM), Ericsson (NASDAQ:ERIC), ZTE (OTCPK:ZTCOY) and Royal KPN (OTCPK:KKPNY). It will offer flat-rate licenses for patents in 2G, 3G and 4G technology that will vary based on the "value the technology brings to the device."
Such a setup will let those building connected cars, or smart meters and thermostats, quickly settle licensing around required patents without wading into complicated negotiations with several parties. For the telecoms, it means more and easier licensing opportunities beyond phones and tablets.
Kasim Alfalahi had left Ericsson to found the new group.
The U.S. has extended a lifting of sanctions against ZTE Corp. (OTCPK:ZTCOY) for the second time, as the Chinese maker of telecommunications equipment works to repair its reputation after allegedly violating trade rules with Iran.
The Commerce Department said its temporary sanctions relief will be extended to Nov. 28, which will allow ZTE to continue working with American suppliers.
The U.S. Commerce Department has extended the temporary lifting of sanctions on ZTE Corp. (OTCPK:ZTCOY) through Aug. 30, as the Chinese maker of telecom equipment tries to rebuild its reputation after allegedly breaking sanctions against Iran.
The extension of temporary relief is good news for ZTE, which has been scrambling to cope with the potential damage on its global operations and brand image.
China's ZTE Corp.'s (OTCPK:ZTCOY) board will meet early next week to replace three of its most senior executives, in an apparent bid to see U.S. restrictions on its business lifted after it was accused of violating sanctions against Iran.
Chief Executive Shi Lirong and executive vice presidents Tian Wenguo and Qiu Weizhao will step down, with Chief Technology Officer Zhao Xianming expected to assume the role of CEO and chairman.
The U.S. Commerce Department is giving Chinese telecom equipment and smartphone maker ZTE Corp. (OTCPK:ZTCOY) a three-month reprieve on the tough export restrictions it imposed earlier this month after allegedly breaking sanctions against Iran.
The easing, which will suspend the penalties as of Thursday, could be extended provided that ZTE is timely in performing undertakings and cooperates with the U.S. government in "resolving the matter."
China's ZTE Corp. (OTCPK:ZTCOY) is delaying the publication of its annual results because it needs to assess the impact of tough U.S. export restrictions imposed on the telecom equipment maker last week.
The company's board meeting will also be postponed, while its Hong Kong-listed shares continue to be suspended.
China's ZTE Corp. (OTCPK:ZTCOY) is likely to appeal tough U.S. export restrictions for alleged Iran sanctions violations, after the telecom equipment maker's costly lobbying effort failed to allay concerns about its business.
The Commerce Department last week banned U.S. manufacturers from selling components to the company, a move that could disrupt its global supply chain and create substantial parts shortages.
Trading in ZTE shares has been halted since March 7 in Hong Kong and Shenzhen.
China's ZTE Corp. (OTCPK:ZTCOY) is an unfamiliar name to many American consumers, but it is well known among U.S. technology vendors, who face a sudden roadblock in selling to the big customer.
On Monday, the U.S. imposed export restrictions on the telecoms equipment maker over an alleged scheme to re-export controlled items to Iran.
While ZTE isn't big enough that its loss would be a major financial blow to U.S. businesses, the big worry is about a possible backlash from China that could squelch demand for foreign components there.