Futurewei, the research wing of Huawei in the US, began to lay off more than 70 per cent of its 850 strong workforce, that is, over 600 employees!
HRKatha had earlier carried a story that said the layoff was expected since Futurewei Technologies had been put on a trade blacklist by the US government. The blacklisting took place because the US government considered the Company a security risk like many other organisations on the list. The Justice Department has charged the organisation with various crimes including stealing of trade secrets. The blacklisting not only prevented the Company from moving sensitive technologies to the parent company, but also stopped it from buying materials or products from other technology companies in the US.
With business operations being cut short, the Company had no option but to lay off employees. The employees had all been asked to upload their data onto the Cloud in May, and since then it is reported that no work has been happening in the organisation.
Futurewei, which has offices in Silicon Valley, Greater Seattle, Chicago and Dallas has filed for 2,100 patents in the fields of telecommunications, 5G cellular networks, and video and camera technologies.
Huawei had a 1500 strong workforce in the US, which included the staff of Futurewei. The remaining staff of Huawei handles the supply chain, customer support, public affairs and other functions.