- The govt of USA had blacklisted Huawei in May 2019
- Companies like Google had earlier revoked support to Huawei devices
A report published by The Wall Street Journal has said that Huawei is planning to lay off hundreds of its employees working in the United States. It is to be noted here that the USA administration, lead by Trump, has blacklisted Huawei from doing business in the country citing National Security reasons.
Ken Hu, deputy chairman, Huawei, sharing his thoughts about the restrictions by USA had earlier said, “In recent days, restrictions, based on un-grounded allegations, have been imposed on Huawei in order to disrupt our business operations. We believe this behavior is totally unjustified.” He was speaking at the at the Potsdam Conference on National Cyber-security in Germany.
Huawei’s USA subsidiary Futurewai may get hit
The layoffs, if done, may hit employees working at Huawei’s U.S. development subsidiary Futurewei. Futurewei labs are located in Texas, California and Washington state in USA. These employ over 1500 people. The employs sell equipment to rural wireless carriers in the country.
Huawei CEO and founder Ren Zhengfei had earlier said the company, as an after effect of the restrictions, expects a $30 billion during the the next couple years. USA’s President Donald Trump, had agreed to ease restrictions on Huawei and had allowed it to do business with USA based companies as so long as national security was not jeopardized.