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Hikvision Faces Job Cuts Amid Rising UK Sales and US Sanctions

2024-10-13 01:36:34.500000

Hikvision, the Chinese surveillance camera giant, is facing significant challenges as it reportedly cuts over 1,000 jobs in its R&D department, a move attributed to business pressures from US sanctions and a sluggish economy [bf14bca5]. This comes despite a surge in sales in the UK, where Hikvision UK Limited reported a more than doubling of sales in 2023, reaching £32.6 million, while total revenue rose 22% to £50.8 million [c96bcf0a]. The spike in UK sales has sparked calls for a comprehensive ban on the company, with concerns raised about security and human rights abuses [c96bcf0a]. Former Tory leader Sir Iain Duncan Smith has emphasized the need for a full ban, citing ongoing security concerns [c96bcf0a].

Hikvision's job cuts follow its addition to the US Entity List in 2019 under the Trump administration due to alleged human rights abuses, which has severely impacted its operations [bf14bca5]. The US Federal Communications Commission (FCC) banned Hikvision from selling new equipment in 2022, further complicating its business landscape [bf14bca5]. Despite these challenges, Hikvision maintains that it is not a national security threat and plays a vital role in public safety [c96bcf0a]. The company has seen its stock lose over half its value since July 2021, and revenue growth has slowed significantly, with only 2.1% in 2022 and 7.4% in 2023 [bf14bca5]. Hikvision is also accused of human rights abuses in Xinjiang, which the company denies [c96bcf0a]. As of the end of 2023, Hikvision had 58,544 employees, and it claims the job cuts are part of an 'optimisation of R&D power' rather than large-scale layoffs [bf14bca5].

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