According to reports, Huawei may be planning to make major job cuts at its US operations. These job cuts are expected at Huawei's US-based research and development arm, Futurewei Technologies, The Wall Street Journal reported citing unnamed people familiar with the situation. Huawei's research and development unit currently employs 850 people at different labs across the country where hundreds could be laid off as part of these mass layoffs, reports the WSJ. Some of Huawei's Chinese employees were given the option of keeping their jobs and returning home to work.
The administration of US President Donald Trump has put Huawei on its so-called entity list, which meant US companies needed a license to supply US technology to the Chinese firm. Huawei remained barred from developing 5G networks in the United States, and the Trump administration is trying to convince its allies to do the same. Last week, Monaco became the first European country to roll out a 5G network based on Huawei technology.
The Trump administration accuses Huawei of having direct ties with the Chinese government, a claim Huawei denies. After Trump met with Chinese President Xi Jinping on the sidelines of the G20 summit in Osaka last month, Huawei won a bit of a reprieve when Trump said he would ease the punitive measures so long as the equipment sold to the Chinese company did not pose any risk to national security.
Last month, Huawei urged India to make an "informed and independent decision" on allowing its 5G trials in India as Huawei reeled under pressure following the US ban. The US has banned Huawei over concerns of security and Washington has been pressuring other countries to restrict the operations of the Chinese telecom firm. Meanwhile, India is yet to take a call on whether it intends to place curbs on Huawei or allow Huawei to participate in the upcoming 5G trials in India.
Huawei said that it received full support from India for about two decades for its operations and obtained Department of Telecom (DOT) invitation to conduct 5G trials.
(With PTI inputs)