Huawei, the Chinese tech giant, plans to cut hundreds of jobs in its US subsidiary. Reports have surfaced that since the company was blacklisted by the US earlier this year, software and chips have been made unavailable to them.
The dismissing of jobs are going to be in force in the US-based research and development subsidiary called Futurewei Technologies. This facility employs 859 people across the country including in Texas, Washington, and California. So far, it is not clear how many jobs will be cut, but an estimate could be within hundreds. Many employees have already been notified of their sacking, but some Chinese staff in the US have been offered to transfer their jobs to China in order to be retained.
The move to sack employees comes in the wake of the decision by the US Commerce Department to limit access of Huawei to US sourced technology and hardware sans a license. Earlier in 2019, Washington said that Huawei’s tech provided a risk to national security, which gave free access to the Chinese government for espionage and malware activity.
Huawei is currently the second largest vendor of smartphones in the world. They insist that the company is independent of the Chinese government, with no links to national security threatening elements. It has now challenged the US to prove their allegations of espionage, since being blacklisted by them.