The ongoing saga between Huawei and the United States doesn’t seem to have an end in sight, with the latest development coming from the Wall Street Journal (paywall), with the publication reporting that the firm plans to lay off hundreds of US-based workers.
According to WSJ, the lay offs are specifically for the firm’s research and development efforts, with a subsidiary named Futurewei Technologies getting the axe. The subsidiary is said to operate a number of research labs in the US, although it is not mentioned what division it is involved in.
The publication also notes that Huawei will be laying off all non-Chinese employees, with some already to said to have received notifications that they will be let go. As for the Chinese workers, they will be given the option to relocate back to China and remain with the firm should they want to.
With Huawei yet to officially comment on the situation, it’s yet to be seen if these reported lay offs will materialise. It’s also unclear if these supposed cuts are a direct cause of the recent trade restrictions that US president Donald Trump imposed on Huawei a couple of months ago, or whether this is a display of strength on the part of the Chinese firm.
If it is the latter, given past experience, Trump isn’t likely to let any shot across his bough go by unnoticed.
As such, the situation between the US and Huawei appears to be far from over.