Huawei has shed more than 600 of the 850 researchers at its Futurewei subsidiary on 22 July, reported Cnet, citing an e-mail from the company. The job cuts are a response to the US Commerce Department blacklisting's impact on its business, the news portal said.
The research unit has offices in California, Illinois, Texas and Washington State, and recorded USD 510 million in operating costs last year, Huawei noted. Some of its workers reportedly knew last week that they would be dismissed, said Cnet.
A company spokesperson said in an e-mail that such decisions are never easy to make and that eligible employees will be offered severance packages, including both pay and benefits. It added that Futurewei will continue to operate in strict compliance with US local laws and regulations.
The US government blackisted the company in May by adding it to the "entity list" of groups deemed to be acting against national security interests. That happened after President Donald Trump signed an executive order essentially banning the company, based on long-term concerns that it maintained close ties with the Chinese government, although Huawei has consistently denied that, said Cnet.
This blacklisting stopped US companies from selling equipment to Huawei, and Reuters noted that the designation made it illegal for Futurewei to transfer sensitive technologies to its parent in China, said Cnet. An Futurewei employee who kept their job told Reuters that Huawei got its workers there to upload all their data to a cloud just before the ban took effect, and most work ceased, Cnet added.
