Huawei’s UK arm has warned that its revenue is set to fall again in 2025, continuing a multi-year decline triggered by government restrictions and reduced market access.
The Reading-based subsidiary of the Chinese telecoms giant revealed in newly filed accounts that annual turnover dropped to £188.2m in 2024, down from £229.6m the year before.
This marks a steep fall from its 2019 high of £1.26bn, with revenues slashed year-on-year amid increasing regulatory pressure.
The downturn follows a decision by the UK government in 2022 to remove Huawei technology from national 5G networks by the end of 2027 – a move that has heavily impacted the company’s local operations.
Alongside the financial drop-off, the company has significantly reduced its UK workforce.
Headcount has fallen from nearly 900 in 2019 to just 176 employees in 2024, further highlighting the broader impact of the restrictions on its presence in the country.
Despite the continued decline, Huawei UK said it expects to remain profitable, although margins have also shrunk.
Pre-tax profit dipped to £8.8m in 2024, compared to £11.4m in 2023 and £17.5m in 2022.
Huawei has consistently maintained that it will comply with all local regulations and reiterated its long-term commitment to the UK market, but by ‘focusing on the sale of products that are not impacted by the UK or US restrictions’, its directors said in a file submitted on Companies House.