Huawei Struggles Amidst Trade War, Layoffs Imminent


The Wall Street Journal reports that Chinese company Huawei Technologies is planning huge layoffs in its U.S. locations as it continues to grapple with the fallout of the U.S-China trade war.

Workers in Huawei’s U.S. research and development subsidiary, Futurewei Technologies, will be affected. Approximately 850 people work at Futurewei labs throughout the U.S. Hundreds of people are expected to be affected by the layoffs.

On May 16, the Commerce Department placed Huawei on its entity list. This blocked other companies from supplying Huawei with U.S.-sourced technology if they did not have a license to do so. Huawei now has a much more limited ability to gain access to key U.S. components for its products.

Now, it is more complicated for Futurewei to work with Huawei offices in China. Futurewei’s research and development could be seen as U.S.-sourced technology.

Huawei is the largest producer of telecommunications equipment in the world.

Read the full story here.


Economics, Finance and Investing