Huawei lays off hundreds of workers at US research arm

Huawei lays off hundreds of workers at US research arm

China’s Huawei has laid off more than 600 workers from its US-based research arm Futurewei, as a result of being put on a trade blacklist by the US government.

Huawei said in a statement that the layoffs, effective as of Monday, were “due to the curtailment of business operations” caused by the US government putting Huawei on the “entity list”, which prevents US companies from directly exporting technology to the embattled telecoms giant without a licence.

The blacklisting of Huawei caused US suppliers such as Google, which produces the Android operating system and Play app store used by Huawei smartphones, to suspend their partnerships with Huawei.

It also meant that Futurewei, which is based in California and incorporated in Texas, could no longer transfer certain technologies back to Huawei, thus scuppering the original aims of the research arm.

Futurewei was founded in 2001 and its operating costs last year were $510m, Huawei said.

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