Chinese telecommunication firm ZTE will reportedly be shedding about 3,000 jobs, including a fifth of positions on its grappling smartphone business in China, company insiders with knowledge about the matter told Reuters.

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ZTE's global handset operations will shed 600 jobs, with most of the cuts affecting China.

"Cuts in the handset business in China will be beyond 20 percent," a senior executive said, adding that the lay-offs are scheduled to be completed within the first quarter.

ZTE, however, declined to comment about the news.

It could be noted that based on the industry database IDC, ZTE's worldwide smartphone shipment last year plunged to 36.5 percent compared with that of in 2015.

Also last year, the US Commerce Department first announced that it will impose a ban on exports by US firms to ZTE for purportedly breaking Washington's sanctions on Iran. The ban has not been implemented yet, but if it pushes through, ZTE's supply chain could severely suffer.

Meanwhile, Zhao Xianming, ZTE's chairman, admitted on his New Year speech that the company had "encountered its biggest crisis in its 31 year history."

He also revealed that ZTE, which reported an annual sale of over $15 billion, will reorganize its management structure.

"In 2017... businesses that don't fit our strategic direction or with low output performance will be shut, suspended, merged, or reconfigured, improving the company's core competitiveness."

Reuters also noted that it saw internal memos that show that ZTE has created four new senior vice president positions, which will overlook on investment, internal audit, compliance, and tax.

TagsZTE, ZTE jobs, ZTE job cut