Ren Zhengfei, founder and CEO of Shenzhen-based Huawei, with China President Xi Jinping [REUTERS]
Some 850 people in research labs across America will lose their jobs.
Chinese technology giant Huawei is closely linked to China’s military intelligence, and has been on the receiving end of punitive U.S. blacklisting. Today, WSJ reports that Huawei is said to be preparing to lay of hundreds of people from its U.S. based research and development subsidiary (let’s get real, espionage nest) Futurewei.
Dan Strumpf of the WSJ reports:
The layoffs are expected to affect workers at Huawei’s U.S.-based research and development subsidiary, Futurewei Technologies, according to these people. The unit employs about 850 people in research labs across the U.S., including in Texas, California and Washington state.
Huawei declined to comment. The exact number of layoffs couldn’t be determined, but people familiar with the matter said they were expected to be in the hundreds. Some of Huawei’s Chinese employees in the U.S. were being given the option of returning home and staying with the company, another person said.
Futurewei employees have faced restrictions communicating with colleagues in Huawei’s home offices in China following the May 16 Commerce Department decision to put Huawei on its so-called entity list, which blocked companies from supplying U.S.-sourced technology to Huawei without a license, according to these people.
The WSJ reports that some employees have already been notified of their dismissal, and more planned cuts could be announced soon.
“Huawei is laying off as many as 850 people from its “R&D division” (aka Thievery Division) in the US,” writes Hyman Capital’s Kyle Bass. “Many have already received notices to go back to china and regroup or be fired. @HuaweiFacts hasn’t posted the firings to its twitter site yet.”
Out of $70 billion that Huawei spent buying components in 2018, roughly $11 billion went to U.S. firms including Qualcomm, Intel, and Micron Technology.
Today, Reuters reports the Trump administration “may approve licenses
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