Huawei planning massive layoffs in US: report

Huawei planning massive layoffs in US: report
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Chinese telecommunications giant Huawei is planning to lay off hundreds of employees in the U.S., the Wall Street Journal reported Sunday.

The layoffs are reportedly expected to hit Huawei’s U.S. development subsidiary Futurewei. 

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The subsidiary employs 850 people in research labs throughout the U.S., including Texas, California and Washington state. 

A source familiar with the situation told the Journal that hundreds of people are expected to lose their jobs, although no exact figure was given.

Huawei was added to the Commerce Department’s entity list in May, which is seen as a death sentence for included groups as U.S. companies are banned from doing business with them. The decision was made citing national security threats.

The Commerce Department subsequently implemented a 90-day extension before Huawei would be added to the list to give U.S. companies time to adjust.

President TrumpDonald John TrumpThe Hill's Campaign Report: Democratic field begins to shrink ahead of critical stretch To ward off recession, Trump should keep his mouth and smartphone shut Trump: 'Who is our bigger enemy,' Fed chief or Chinese leader? MORE late last month seemed to walk back his administration’s crackdown on Huawei while attending the Group of 20 summit, but the Commerce Department is reportedly still treating the company as blacklisted.

Huawei CEO Ren Zhengfei said in June that the company expects to lose $30 billion in sales over the next two years because of the blacklisting.