Huawei has been through some sh*t with the U.S. as of late, and they’re still feeling the repercussions of being placed on the U.S. entity list. According to people familiar with the matter, the layoffs are expected to affect workers t Huawei’s U.S. based research and development subsidiary, Futurewei Technologies. And there’s about 850 people in these research labs across the U.S. including California, Washington and Texas.
The exact number of the layoffs haven’t been revealed, but are expected to be in the hundreds. The layoffs are the latest setback for Huawei, and it limits Huawei’s ability to buy critical components and software for their products from the U.S. And just for reference, Huawei bought $11 billion worth of American tech in 2018.
So that speaks about the significance of the layoffs. Some employess have already been notified of their dismissal, and other layoffs are planned in the near future. What effect this has still remains to be seen, but considering this just makes it harder for them to purchase components and parts, I don’t see how this could be a good thing for the Chinese tech firm.
While all seemed fine and dandy, not too long ago with U.S. President Donald Trump announcing that Huawei may resume business with America, but of course, that moment was fleeting. All this won’t change until the two countries see eye to eye, but till then, Huawei will be a victim in the game the big boys are playing.
