NEW YORK, July 14 – Huawei Technologies Co Ltd plans a massive layoff in the United States when China's telecommunications equipment company grapples with its US blacklist, Wall Street Journal reported, citing people familiar with this problem.
The layoffs are expected to affect the work in the US-based research and development branch of Huawei Futurewei Technologies, which employs around 850 people in research laboratories across the United States, the Journal said.
Layoffs can reach hundreds, one person told the Journal. Chinese Huawei employees in the United States are given the choice to go home and live with the company, others added.
Some employees have been notified of their dismissal, while more planned layoffs can be announced soon, the newspaper said.
Huawei declined to comment when contacted by Reuters.
After the Commerce Department decided to put Huawei on the list of entities it called, Futurewei employees faced limitations to communicate with their colleagues at Huawei's headquarters in China, the people told the Journal.
Last week, Trade Secretary Wilbur Ross said the US government would issue licenses for companies that want to sell goods to Huawei where there are no threats to national security. – Reuters