Huawei supposedly prepares enormous United States layoffs


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Huawei might be preparing to downsize its United States operations.

Érika García / CNET

Huawei is preparing significant layoffs at its United States research study laboratories as it has a hard time under the weight of the Commerce Department blacklisting, The Wall Street Journal reported Sunday. The embattled Chinese telecom’s Futurewei R&D subsidiary utilizes about 850 individuals in Texas, California and Washington state.

The layoffs might number in the hundreds, according to the Journal, which mentioned confidential sources. A couple of individuals obviously currently understand that they’ll be dismissed, however even more cuts are anticipated and some Chinese employees are being enabled to continue with Huawei if they return house.

Huawei didn’t instantly react to an ask for remark.

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Huawei was blacklisted in May by being added to the US “entity list” of groups deemed to be acting contrary to national security interests. That came after President Donald Trump signed an executive order essentially banning the company based on national security concerns that it maintained close ties with the Chinese government — allegations the company has consistently denied. This blacklisting stopped US companies from selling equipment to Huawei.

However, Trump promised last month to ease those restrictions as he tried to revive trade talks between the US and China. Senior administration officials confirmed that companies will be able to resume business with Huawei if they get licenses and there’s no threat to national security. Huawei bought $11 billion worth of US technology in 2018, the Journal noted.

First published at 3:47 a.m. PT.
Updated at 4:25 a.m. PT: Adds more detail.