Huawei Technologies has cut some U.S. employees and hundreds of layoffs could be coming, according to The Wall Street Journal. The alleged layoff plans involve China-based Huawei’s U.S.-based research and development subsidiary Futurewei Technologies.
Futurewei in recent weeks has been moving to separate its operations from Huawei since the U.S government in May 2019 put the Chinese parent on a trade blacklist, Reuters notes.
The U.S. government has repeatedly alleged that Huawei’s technology may include Trojan Horses and/or “back doors” that allow China’s government to spy on customers and foreign entities. The technology company and China have repeatedly denied the claims.
The U.S.-Huawei feud comes at a critical time. Governments and service providers worldwide are striving to build next-generation 5G wireless networks. Huawei is bidding to participate in many of those 5G network projects, but some service providers and governments have hesitated to use the equipment amid repeated warnings and pushback from the U.S. government.
Amid the controversy, Futurewei employees have faced restrictions to communicate with their colleagues in Huawei’s home offices located in China, The Wall Street Journal reports.