Chinese technology company Huawei plans to lay off hundreds of employees in the United States after its inclusion in the “blacklist.”
Layoffs are expected to take place at Futurewei Technologies, a research and development division of Huawei Technologies based in Silicon Valley.
Futurewei research laboratories in the United States, including in Texas, California and Washington state, employ 850 people. Overall, Huawei has about 1,500 employees in the United States.
The exact scale of the cuts is unknown. According to a WSJ source, hundreds of people will lose their jobs.
In May, US President Donald Trump signed a decree empowering the government to block information and communications technology transactions that “pose an unacceptable risk to the national security of the United States.”
Although the decree does not mention specific countries or companies, officials and industry representatives said that it probably targets Huawei and its Chinese competitor ZTE Corp.
In addition, the US Department of Commerce decided to add Huawei and related legal entities to the “blacklist”, limiting their ability to buy services and components from US firms.
Founder and CEO of Huawei, Ren Zhengfei, said in June that due to the restrictive measures imposed by the United States, the company would reduce its production capacity. The revenue of the Chinese technology giant in the next two years could be reduced by $ 30 billion relative to forecasts.
At the end of June, the United States and China agreed to resume trade negotiations after Trump offered concessions, including easing restrictions on Huawei. The Trump administration announced that a ban on the sale of its products by US companies to a Chinese manufacturer would be applied only when it threatens national security. At the same time, US Commerce Secretary Wilbur Ross said that Huawei will not be removed from the blacklist and American firms will still have to receive a license to do business with a Chinese company.