According to reports, Chinese telecommunications company Huawei is preparing to lay off hundreds of workers in the United States. The Wall Street Journal. The company has struggled in recent months after the Trump administration imposed a de facto ban on US sales to the company, citing possible security threats and amid the US-China trade war.
According to the WSJHuawei plans to lay off workers at a research subsidiary called Futurewei Technologies, which operates several research laboratories. Reportedly, Huawei will allow some Chinese employees the option of relocating to China to remain within the company. Apparently, some employees have already been notified that they will be dismissed, with other layoffs planned in the near future.
In May, the White House issued an executive order that allowed the United States Secretary of Commerce to grant the United States the authority to prevent US companies from selling to designated entities as a threat to national security. As a result, Huawei can no longer buy some of the parts and software it needs for its products. Although it looked like Huawei might be a little on hold for the ban on US sales last month, the Trump administration has indicated that things are not likely to change until the two countries resolve their differences.