Huawei cut its revenue target in India by up to 50 per cent and prepared to lay off more than half of its workforce in anticipation of a slowdown in business due to political tensions between the country and home market China, The Economic Times (ET) reported.

The Indian newspaper reported Huawei was now targeting revenue of $350 million to $500 million in India in 2020 rather than the roughly $700 million to $800 million it had previously projected.

In addition, Huawei’s India unit will cut 60 per cent to 70 per cent of its workforce, which currently amounts to 700 people, along with hundreds from third party companies used mainly in areas including network support, field deployment, outsourcing and sales.

Huawei’s revised outlooks and cuts come as the company doesn’t expect any new business from its two major telecoms operator customers, Bharti Airtel and Vodafone Idea, an ET source explained.

India is expected to take a harder line on Chinese vendors Huawei and ZTE, following in the footsteps of the US and other countries, with its stance seemingly prompted by weakening relations between the two countries.

ET reported the government had informally nudged private operators to replace Chinese equipment in its networks without disrupting services, although an official ban is yet to be put in place.

Since its US ban, Huawei has also scaled down its consumer and handset business in India, launching fewer devices in the country, added ET.