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Huawei will dismiss hundreds of its employees in the US

According to The Wall Street Journal, the Chinese telecommunications company Huawei is preparing to fire hundreds of workers in the United States.

The company faced difficulties in recent months after President Donald Trump administration imposed a ban on the use of American technology.

According to The Wall Street Journal, Huawei plans to dismiss employees of the research company Futurewei Technologies, which manages a number of research laboratories.

“Huawei currently employs around 850 people throughout its research labs in the U.S, in states such as Texas, California and Washington but the exact number of people the company is planning to layoff is currently unknown”, — reports Techthelead periodical.

However, Huawei will provide some Chinese employees opportunity to move back to China to stay with the company.

Some employees, apparently, have already been notified that they will be fired, and other layoffs are planned for the nearest future.

Reminding, in May, Donald Trump signed a decree allowing the US Department of Commerce to block transactions involving foreign communications companies if they pose a threat to the country’s security.

On the next day, May 16, The US Department of Commerce added Chinese company Huawei and 70 related companies in a black list, banning purchase of components and technologies of American manufacturers without special permission.

A few days later, Google refused to cooperate with Huawei (new Huawei smartphones will not have Google applications), Intel, Qualcomm, Broadcom, ARM, Microsoft and other companies.

Huawei, in turn, promised to release security updates and provide after-sales service for all existing Huawei and Honor smartphones and tablets. On May 21, it was reported that the United States had postponed the introduction of restrictions on Huawei for 90 days.

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Nikolaos Chrysaidos
Ren Zhengfei

Huawei said it was ready to transfer its devices from Android and Windows to its own operating system this year. The company also asked to accelerate the consideration of a lawsuit against the US government, filed in March 2019 for the adoption of a law restricting its business in the US.

Although US President Donald Trump agreed to restrictions and allow company to work with other US companies, this decision does not help too much to ease the pressure that Huawei is currently facing.

“In the next two years, I think we will reduce our capacity, our revenue will be down by about $30 billion dollars compared to forecasts”, — Huawei CEO Ren Zhengfei said.

At the same time, Chinese authorities declared response measures – creation of a “black list” of foreign companies and individuals which activity is detrimental to China’s national interests.
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