Chinese telecom firm Huawei Technologies is planning massive U.S. layoffs due to its recent struggles with the U.S. Commerce Department. The Company is reportedly preparing to layoff hundreds of U.S. workers based in Texas, California, and Washington.
The layoffs will occur within the telecom company’s research and development subsidiary, Futurewei Technologies. Some layoffs have already begun and employees are being notified of their dismissals. “A few people apparently already know that they’ll be dismissed, but further cuts are expected and some Chinese workers are being allowed to continue with Huawei if they return home,” said Sean Keane, reporter at CNET.
The mass layoffs can largely be attributed to President Donald Trump’s national security concerns with Huawei. In May, the company was deemed a threat to national security and blacklisted under a U.S “entity list.” Trump then issued an executive order banning the Chinese telecom firm from purchasing equipment from U.S. companies under the reasoning that Huawei was spying for the Chinese government.
It seems that both the U.S. and China are working towards a compromise in the ongoing trade war. Some of the restrictions placed on Huawei have already been lifted. Companies will be able to resume business with Huawei if they obtain proper licensing.