On August 23rd， as reported by Kuaikeji and obtained by Sina Technology from informed sources， Huawei Cloud CEO Zhang Pingan announced organizational restructuring yesterday. This adjustment involves the dissolution and integration of several departments， with a strategic focus on the Artificial Intelligence (AI) domain.
An informed source revealed that the core of this restructuring lies in increasing investment in strategic industries， specifically AI， while scaling back non-strategic sectors to enhance organizational efficiency.
Following the adjustments， Huawei Cloud will concentrate its business layout on a “3+2+1” framework. The “3” components encompass general computing， intelligent computing， and storage; the “2” includes AI PaaS and databases; and the “1” primarily refers to security.
As of the time of this report， Huawei has not yet provided an official response regarding the organizational restructuring.
However， multiple sources close to Huawei have confirmed the news.
One such source stated that Huawei Cloud incurred losses in 2024 and aims to achieve profitability this year， consequently deciding to prioritize the AI sector. This strategic shift is indicative of Huawei’s broader commitment to leading in advanced technologies， recognizing AI as a critical driver for future growth and competitiveness.
The structural changes may lead to personnel reductions， although the specific proportion remains unclear. Such reorganizations are common across large technology companies as they adapt to market dynamics and technological advancements. The focus aims to streamline operations and allocate resources more effectively towards areas with higher growth potential.
Notably， in June 2025， several high-ranking executives within Huawei Cloud experienced role changes. These individuals included Zhang Xiuzheng， President of Huawei Cloud China; Zhang Dongsheng， Vice President of Huawei Cloud China and Head of the AI Solutions Department; Zhang Peng， CMO of Huawei Cloud; and Xu Weixing， General Manager of Huawei Cloud Guangdong.
Reports indicate that these movements are part of Huawei’s standard three-year rotation policy for its personnel. Given that many executives’ three-year terms were nearing completion around the same time due to previous organizational shifts within Huawei Cloud， this led to multiple position changes occurring concurrently. This rotation system is designed to foster diverse experiences and leadership development within the company.
Looking back， Huawei established the Cloud & Computing Business Group (BG) in January 2020. Subsequently， in April 2021， the Cloud & Computing BG was dissolved. A portion of its business was integrated back into the ICT product line， while another segment was spun off as an independent Huawei Cloud company. This evolution reflects Huawei’s continuous efforts to optimize its organizational structure and cloud business strategy as the cloud computing market matures.
