Huawei's U.S. research arm slashes jobs due to trade ban

Marco Green
July 23, 2019

Huawei mentioned in a assertion the task cuts, powerful July 22, were being "due to the curtailment of company operations" prompted by the US government's steps.

Futurewei Technologies Inc, the U.S. research arm of China's Huawei Technologies Co Ltd, began laying off workers on Monday.

Futurewei has offices in Silicon Valley, Greater Seattle Area, Chicago, and Dallas.

Futurewei, which employed 850 persons in the United States, began laying off staff on Monday, Reuters claimed earlier, citing workers, which include a single who spoke as he still left the company's Silicon Valley campus.

A recent statement from the White House revealed that the executives are strongly concerned about national security and are wary of selling United States telecommunication parts to HUAWEI.

The projected figure by Huawei's CEO is higher than the company's initial growth goal of 20%, and it showed unusual optimism at a time when the US has put the company on its so-called Entity List, effectively banning USA companies from doing business with the Shenzhen-based firm. It also faces criminal charges by the Justice Department for the theft of trade secrets.

Huawei said the job cuts, effective July 22, were "due to the curtailment of business operations" caused by the US government's actions.

The unit, set up in part to work with universities and researchers, recorded $510 million in operating costs a year ago.

The US Commerce Department added Huawei to the trade blacklist in May, a move that bans the company from acquiring technology from US firms without government approval.

The layoffs come two months after the US President Trump put Huawei on the blacklist, making it illegal for its US subsidiary to transfer sensitive technologies to its parent and restricting the Chinese giant from purchasing products from US tech companies. At minimum 50 % a dozen staff members with containers had been noticed leaving the business right before noon on Monday.

One employee, who declined to give his name, told Reuters he had been laid off. Putting a bag full of personal belongings into his auto, he said he had been told the official announcement would come today.

In addition, Futurewei employees can not make any contact with Huawei employees.

Futurewei is credited with 2,100 patents spanning areas of telecommunications, video, 5G cellular networks, and camera technologies, according to the U.S Patent and Trademark Office.

"After that Futurewei has stopped doing any work - nearly stopped everything", he added.

But its headcount has steadily declined since January 2018, when a highly-anticipated deal to enter the USA smartphone market with AT&T and Verizon collapsed last minute due to pressure from the US government.

Other reports by Click Lancashire

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