Chinese multinational technology company, Huawei Technologies, plans to cut jobs extensively in the US as it has been struggling to handle business following its US blacklisting.
Maximum impact of the layoff will be on the Company’s research and development subsidiary, Futurewei Technologies, which has a workforce of about 850 employed in its research labs in Texas, California, Washington and other locations across the US.
The placing of Huawei on a blacklist means that US companies cannot supply computer chips, software and other parts to Huawei without seeking permission from the government. Apparently, the US restrictions have had some adverse effect on the Company’s financial performance.
Amongst the largest manufacturers of smartphones in the world, Huawei expects its revenue to be approx. $100 billion this year and the next, even though its target was to touch $135 billion this year.
Huawei has about 1,500 employees in the US, most of whom handle equipment sales to rural wireless carriers and others are engaged in research for Futurewei. Globally, Huawei has about 180,000 employees.
It is reported that hundreds may lose their jobs following the layoff. The Chinese employees of Huawei, however, will be given the option to stay on with the Company, provided they return to China.
Some employees have already been handed their notices, while others will soon be informed.