Friday, 18 October, 2019

Huawei will reportedly lay off hundreds of U.S. workers

Huawei plans extensive layoffs at US operation: Report Huawei planning major job cuts in US: WSJ
Russell Knight | 15 July, 2019, 04:12

One person told Reuters that the layoffs could be in the hundreds.

Trump gave the Chinese tech company a little relief in late June when he said he would allow some US suppliers to sell components to Huawei. Huawei has offered Chinese employees to return to China to pursue their careers, another source said.

Some workers have already been notified of the dismissals and additional cuts could be announced soon.

Huawei was added to a Commerce Department list in May that prohibits USA companies from supplying it with new American-made goods and services unless they obtain licenses that will likely be denied. The U.S. has also said Huawei is a national security issue - not a trade problem - amid the ongoing trade dispute with China.

Some positive news that came from over the weekend from Reuters reporting that the US may approve licenses for companies to re-start new sales to Huawei in as little as two weeks should help to restore some faith into the trade talks this week.

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Separately, Huawei has shut down its USA sales of solar inverters, Roth Capital Partners said in a research note in June.

A Huawei spokesman mentioned "the Entity record restrictions must be eliminated altogether, reasonably than have short-term licenses utilized for United States distributors".

However late final month, after assembly with Chinese language president Xi Jinping, President Donald Trump introduced American companies might promote merchandise to Huawei. While it looked as though Huawei might be getting a bit of a reprieve from the USA ban on sales last month, the Trump administration has indicated that things likely won't change until the two countries resolve their differences.

Suppliers want to be allowed to provide customer service support for chips they build and sell overseas, or the approval to ship new American-made equipment to Huawei and its subsidiaries around the world.

The Trump administration has pushed allies to bar Huawei from 5G, citing risks about state spying - allegations the company has denied.

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