Core Insights - Huawei Cloud has undergone significant internal restructuring aimed at focusing on the development of artificial intelligence (AI) [1][2] - The restructuring involves the potential layoffs and integration of multiple departments, affecting possibly over a thousand employees [1] - The company aims to enhance organizational efficiency by concentrating on strategic industries, particularly AI, while reducing focus on non-strategic sectors [1] Financial Performance - In 2024, Huawei Cloud achieved revenue of 38.523 billion yuan, representing a year-on-year growth of 8.5%, with total revenue including inter-departmental transactions reaching 68.801 billion yuan [2] - Despite the revenue growth, Huawei Cloud remains in a loss-making position, with a goal to achieve profitability this year [2] Product and Market Strategy - Huawei Cloud has introduced a new business framework termed "3+2+1," which includes three main sectors: computing, intelligent computing, and storage, along with two platforms: AI PaaS and databases, and a focus on security [1] - The company has announced the discontinuation or impending cessation of several products, including enterprise email, domain registration, and various cloud services, raising concerns about its future direction [5] Leadership Changes - In June 2025, Huawei Cloud experienced a series of executive changes involving key positions, which has led to speculation regarding the company's future development [4]

Group 1 - Huawei Cloud announced organizational restructuring to focus on AI, with multiple departments being integrated or eliminated, although the exact percentage of layoffs is unknown [2] - The restructuring will impact core teams including the product department, public cloud services department, and R&D department, potentially affecting thousands of employees [2] - The focus post-restructuring will be on three main areas: computing, intelligent computing, and storage, along with two AI-related services and security [2] Group 2 - Huawei Cloud's revenue for 2024 is projected to be 38.523 billion, representing an 8.5% year-on-year increase, with total revenue including inter-department transactions at 68.801 billion [2] - The company is currently in a loss position for 2024 and aims to achieve profitability by concentrating on the AI sector [2] - Recent internal changes at Huawei Cloud included multiple executive position shifts, indicating ongoing adjustments within the organization [3][4]