US workers

According to the reports of The Wall Street Journal, Chinese tech company Huawei, after struggling with a blacklist imposed by the Trump administration over national security concerns plans to lay off hundreds of U.S. workers in the United States.


According to the Wall Street Journal, these layoffs by Huawei are expected to hit the US workers in Huawei’s U.S. development subsidiary Futurewei Technologies, which operates a number of research labs. In these research labs, about 850 people are employed in Futurewei throughout the U.S., including Texas, California and Washington state. Altogether, about 1,500 employs are working under Huawei in the U.S. they mainly sell equipment to rural wireless carriers.

The exact number of layoffs of U.S. workers is not yet clear. But according to the journal, a person familiar with the matter told that hundreds of people were expected to lose their jobs. An option is provided to the Chinese employees by Huawei, that they can relocate back to China to remain within the company.

In May, a national emergency was declared by The Trump administration over threats to national security. After that, Huawei was added to the black list by the Commerce Department. After this, U.S. companies were restricted from doing business with Huawei unless they receive special permission from Commerce.

According to the CEO and founder Ren Zhengfei, due to the  U.S. ban the company expects a $30 billion hit, over the next couple years. Recently, a new laptop was also withdraw by the company.

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However, restrictions on Huawei has been minimized by the President Donald Trump. After that, the permission is granted to the U.S. companies to do business with Huawei, as long as national security is not threaten. Last month, at the G-20 in Japan, after the agreement between Trump and Chinese President Xi Jinping, which resulted in this concession. The talk was about the trade restart and avoid further restrictions for now.

Larry Kudlow, White House economic advisor clearly said that Trump was not granting Huawei a general pardon. Rather, More licenses will be granted by the commerce to U.S. companies who want to do business with Huawei.