WASHINGTON: Chinese telecoms giant Huawei, which is subject to sanctions of US over the concerns related to its ties to the government in Beijing, is planning to make major job cuts at its US operations, The Wall Street Journal reported on Sunday.
The layoffs are expected at US-based research and development arm of Huawei, Futurewei Technologies, the paper reported, in which it cited unnamed people familiar with the situation.
The report said that 850 people are currently employed by the unit at several labs in the United States, but hundreds of them could be laid off.
Some of the Chinese employees of the company were given the option of keeping their jobs and returning home to work.
Huawei has been put on its so-called entity list by the administration of President of United Stated Donald Trump, which meant the companies of US needed a license in order to supply US technology to the Chinese firm.
Huawei — a leader in next-generation 5G wireless technology — remained barred from developing 5G networks in the United States, and the administration of Trump is trying to convince its allies to do the same.
Monaco became the first European country to roll out a 5G network last week, based on Huawei technology.
Huawei was accused by Washington of working directly with the Chinese government, a claim the company denies.
After Trump met with the President of China, Xi Jinping on the sidelines of the G20 summit in Osaka last month, A bit of a reprieve was won by Huawei when Donald Trump said he would ease the punitive measures so long as the equipment sold to the Chinese company did not pose any risk to national security.