CNBC AI News – August 23 – Huawei Cloud is reportedly undergoing a significant organizational restructuring, spearheaded by CEO Zhang Ping’an, to sharpen its focus on the booming artificial intelligence sector, according to sources familiar with the matter.
The restructuring involves the streamlining of multiple departments, with a strategic pivot towards AI and a parallel contraction of non-core business areas, insiders reveal. This move is designed to enhance organizational efficiency and channel resources into high-growth opportunities.
Huawei Cloud’s future business strategy will revolve around a “3+2+1” framework. The “3” pillars encompass general-purpose computing, AI computing (智算), and storage solutions. The “2” refers to AI Platform-as-a-Service (PaaS) and database offerings. The “1” represents a continued emphasis on security.
Huawei has yet to officially comment on the reported restructuring.
However, multiple sources close to the company corroborate the internal memo outlining the changes.
One source disclosed that Huawei Cloud operated at a deficit in 2024. The current restructuring is largely motivated by a company-wide directive to achieve profitability in 2025, necessitating a singular focus on the high-potential AI market.
While the restructuring is anticipated to involve workforce adjustments, the specific scale of potential layoffs remains unclear.
This strategic shift follows executive-level personnel changes within Huawei Cloud in June 2025, involving figures such as Zhang Xiuzheng, the president of Huawei Cloud China, Zhang Dongsheng, the vice president of AI Solutions, CMO Zhang Peng, and Xu Weixing, the General Manager of Huawei Cloud Guangdong.
These personnel rotations were described as standard three-year internal assignments. Due to prior organizational changes within Huawei Cloud, coinciding expiration dates of these assignments resulted in multiple executive departures occurring simultaneously.
Historically, Huawei established the Cloud & Computing Business Group (BG) in January 2020. This was followed by the dissolution of the Cloud & Computing BG in April 2021, with some operations reintegrated into the ICT product line, while others became the independent Huawei Cloud Company, marking a significant turning point in the company’s cloud strategy.
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