Huawei expects extensive redundancies in its operations in the United States, says WSJ | Money

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A man using his mobile phone passes in front of a Huawei store still open inside a shopping center in Shanghai, China, May 16, 2019. - Reuters photo
A man using his mobile phone passes in front of a Huawei store still open inside a shopping center in Shanghai, China, May 16, 2019. – Reuters photo

NEW YORK, July 14 – Huawei Technologies Co Ltd is planning layoffs in the US as the Chinese telecommunications equipment company is grappling with its US blacklist, the Wall Street newspaper reported, citing people who are familiar with the issue.

The layoffs are expected to affect jobs at Huawei's research and development branch, Futurewei Technologies, which employs around 850 people in research labs in the United States, the Journal said.

The layoffs could be in the hundreds, one person told the Journal. Huawei's Chinese employees in the United States were given an option to go home and be with the company, added another person.

Some employees have already been informed of their dismissal, while further job cuts could be announced soon, according to the newspaper.

Huawei declined to comment when contacted by Reuters.

After the Commerce Department decided to put Huawei in its so-called entity list, Futurewei employees faced restrictions to communicate with their colleagues in Huawei's home offices in China, people told the Journal.

Trade Secretary Wilbur Ross said last week that the US government would issue licenses to companies that intended to sell goods to Huawei, where there was no threat to national security. – Reuters

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