Huawei is planning to lay off employees at its American research and development (R & D) subsidiary Futurewei Technologies, according to the Wall Street Journal, citing people familiar with the matter.
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 us -sourced technology to Huawei without a licence, according to these people.
Tensions between the USA and China grew over Huawei in December after Meng Wanzhou, the company's chief financial officer and daughter of the company's founder, was arrested in Vancouver, Canada, at the request of US law enforcement.
Several Futurewei employees have reportedly been notified about their layoff, and more are expected to be announced in the near future.
It said that two USA chipmakers who supply Huawei said they would apply for more licenses after Ross's comments. As Huawei remains on the US Entity List, US-based companies must seek special permission from the Trump Administration demonstrating that their business plans will not have a potential negative impact on US national security. United States employees were placed on a new IT system and Futurewei completely abandoned its use of Huawei's logo and branding.
Huawei admits that there will be significant losses in revenue if the ban persists, given how it relies on a number of USA vendors for hardware and technologies.
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A Huawei spokesman said then that the firm had cut U.S. jobs but did not address whether it was discontinuing USA inverter sales.
At the G20 summit in Japan last month, Trump said American firms could start selling technology to the Chinese telecommunications equipment giant as long as the sales did not involve equipment that threaten the national security.
A month ago, Huawei had apparently separated its U.S. operations as a way to fight off the effects of the United States restrictions.
A customer response management company and a firm that simulates cross-sectional radar for Huawei are also likely to file applications in the coming days, according to Reuters.