On March 10, Huawei released a 6,500-word internal report on its employee platform, "Xinsheng Community," detailing a large-scale recruitment fraud scandal involving 72 full-time employees and 19 outsourced workers. Some participants allegedly profited by selling internal company data. The report quickly gained traction within Huawei and on social media, becoming the platform's top trending topic.
OD employees and the recruitment fraud network
Reports from The Economic Observer and Sina Finance describe outsourcing dispatcher (OD) workers as contract employees placed at Huawei by third-party HR firms.
OD employees primarily work in technical fields, including software development, big data analytics, and algorithm engineering. Their salaries align closely with those of full-time Huawei staff, and high performers may qualify for permanent roles. However, the latest report highlights major vulnerabilities in the OD hiring system.
Internal whistleblowing: rigged exam system and high-risk departments
The investigation found recruitment fraud across six major Huawei divisions: ICT Products & Solutions, Semiconductor Business, Human Resources, ICT Sales & Services, Terminal Business Group (BG), and the Quality & IT Process Department.
A Huawei Chengdu Research Center employee revealed that the fraud was most widespread in the data storage division, where 62 of the unit's roughly 100 employees faced dismissal, demotion, or official reprimands.
Speculation that Huawei founder Zhengfei Ren traveled to Chengdu to oversee mass firings was denied by company insiders.
Reports of a fraudulent recruitment network—allegedly involving Huawei HR personnel, internal staff, IT bloggers, and external training firms—surfaced on social media as early as mid-2024. The scheme reportedly allowed candidates to secure OD positions through illicit payments.
Whistleblowers claim that some recruits paid a "referral fee" of CNY 20,000 (approx. US$2,767) to secure OD positions, with certain employees forced to pay an ongoing monthly "kickback" of CNY 2,000.
Graded disciplinary actions: from dismissals to demotions
Huawei enacted a tiered disciplinary framework to address different levels of misconduct, as reported by Australian Chinese Daily and EET China.
● Severe violations—such as exam fraud, leaking confidential test materials, and selling company data—resulted in 13 employees being fired and ordered to return illicit earnings. Another 10 employees were dismissed due to serious misconduct or voluntary confessions, while 13 were forced to resign and demoted by three levels.
● Managerial oversight failures led to 26 supervisors being demoted by six levels, with their promotions, salary adjustments, and leadership appointments frozen for six to twelve months. Those whose teams committed only minor infractions received formal warnings. The ICT Products & Solutions division faced the harshest penalties.
All implicated OD employees, including those hired through fraudulent means, were dismissed and permanently banned from reapplying at Huawei. However, the exact number of terminated OD workers remains undisclosed.
Huawei's response: strengthening recruitment integrity
Huawei underscored the importance of outsourced employees in its workforce model and stressed the need for stringent recruitment oversight. The company warned that hiring fraud not only damages individual careers but also threatens corporate governance.
Although Huawei has yet to release an official statement, internal sources advised employees to disregard unverified claims. The case highlights the increasing challenges of workforce oversight in large tech firms and reflects Huawei's intensified focus on internal compliance.
Article edited by Jack Wu
