Categories: USA

Huawei lays off hundreds of employees from US research branch

The repercussions of the trade war between China and the US are still in effect as Huawei has gutted its US research branch. The telecommunication giants have made this bold move on Monday in response to the Commerce Department putting them in the blacklist. They have laid off hundreds of employees.

The company has confirmed via email that more than 600 of the 850 researchers at the controversial Chinese phone maker’s Futurewei subsidiary lost their jobs. The research unit has offices in California, Illinois, Texas, and Washington. Huawei has noted that the research unit had operating costs of $510 million last year. Some of the workers already knew last week that they would be laid off.

A company spokesperson, via an emailed statement, has said that such decisions are not easy to make. The company will offer the laid-off employees some benefits. Eligible employees will be offered severance packages, including both pay and benefits. Futurewei will continue to operate in strict compliance with US local laws and regulations.”

The US had blacklisted Huawei in May. The reason they gave was that they had been acting against national security interests. This blacklisting had come after Donald Trump had signed an executive order banning the company based on long-term concerns that the telecommunication giants had closed ties with the Chinese Government. A claim that has been denied by Huawei.

The executive order meant that US companies were banned from selling equipment to Huawei. Reuters had noted that the blacklisting also meant that it would be illegal for Futurewei to transfer sensitive technologies to its parent in China. A Futurewei employee who was able to keep his job had told Reuters that Huawei had made its workers to upload all their data to a cloud before the ban took effect and most work ceased.

Adyson Sipes

Staff writer for the Chicago Morning Star

Recent Posts

Senate Democrats mock Biden for selling weapons to Israel

Some of President Biden's strongest Senate allies are calling on Israelis to end months of fierce fighting and criticizing the…

11 months ago

The biggest cities in Ukraine are struck by Russian missiles, leaving at least 4 dead and over 100 injured

Ukraine's KYIV — At least four people were killed and nearly 100 injured when Russian hypersonic ballistic missiles attacked Ukraine's…

11 months ago

Good News That’s Much Needed for Biden

The economy is making Americans feel a little more upbeat, especially when it comes to jobs and incomes, which could…

12 months ago

College Ventilation System Reveals Missing Man

The discovery of a decaying body inside a college ventilation system marked the tragic and unexplained end to a missing…

12 months ago

Following three Palestinian shots, a Vermont man was arrested

Following the shooting deaths of three 20-year-old Palestinian-American students in Vermont, authorities have detained a man. According to a news…

12 months ago

China is told to cease “COVID deception” due to the pneumonia outbreak by the US envoy

The United States ambassador to Japan, Rahm Emanuel, urged Chinese authorities "to abandon COVID deception" and demanded that China be…

1 year ago

This website uses cookies.