Some 850 people in research labs across America will lose their jobs.
Chinese technology giant Huawei is closely linked to China’s military intelligence, and has been on the receiving end of punitive U.S. blacklisting. Today, WSJ reports that Huawei is said to be preparing to lay of hundreds of people from its U.S. based research and development subsidiary (let’s get real, espionage nest) Futurewei.
The layoffs are expected to affect workers at Huawei’s U.S.-based research and development subsidiary, Futurewei Technologies, according to these people. The unit employs about 850 people in research labs across the U.S., including in Texas, California and Washington state.
Huawei declined to comment. The exact number of layoffs couldn’t be determined, but people familiar with the matter said they were expected to be in the hundreds. Some of Huawei’s Chinese employees in the U.S. were being given the option of returning home and staying with the company, another person said.
Futurewei employees have faced restrictions communicating with colleagues in Huawei’s home offices in China following the May 16 Commerce Department decision to put Huawei on its so-called entity list, which blocked companies from supplying U.S.-sourced technology to Huawei without a license, according to these people.
The WSJ reports that some employees have already been notified of their dismissal, and more planned cuts could be announced soon.
“Huawei is laying off as many as 850 people from its “R&D division” (aka Thievery Division) in the US,” writes Hyman Capital’s Kyle Bass. “Many have already received notices to go back to china and regroup or be fired. @HuaweiFacts hasn’t posted the firings to its twitter site yet.”
Out of $70 billion that Huawei spent buying components in 2018, roughly $11 billion went to U.S. firms including Qualcomm, Intel, and Micron Technology.
Today, Reuters reports the Trump administration “may approve licenses for companies to re-start new sales to Huawei in as little as two weeks, according to a senior U.S. official, in a sign President Donald Trump’s recent effort to ease restrictions on the Chinese company could move forward quickly.”
Huawei, the world’s largest telecommunications equipment maker, was added to a Commerce Department list in May that prohibits U.S. companies from supplying it with new American-made goods and services unless they obtain licenses that will likely be denied.
But late last month, after meeting with Chinese president Xi Jinping, President Donald Trump announced American firms could sell products to Huawei. And in recent days, Commerce Secretary Wilbur Ross said licenses would be issued where there is no threat to national security.
Trump’s reversal, and rapid implementation by the Commerce Department, suggests chip industry lobbying, coupled with Chinese political pressure, may well reignite U.S. technology sales to Huawei.
Two U.S. chipmakers who supply Huawei told Reuters in recent days they would apply for more licenses after Ross’s comments. They asked to remain anonymous.
A customer response management company and a firm that simulates cross-sectional radar for Huawei are also likely to file applications in the coming days, according to Craig Ridgley, a trade compliance consultant in Washington.
Bird Scooter really is the Uber of scooters: vastly overcapitalized, vastly overvalued, incapable of turning a profit…ever.
Trump’s trade war has reduced the world’s net worth by $2 trillion ($1.5 trillion of which came off the balance sheets of the 1%), with losses most deeply felt in China and Europe; North and South Americans took smaller losses, while the Middle East actually made gains: the richest Saudis have grown 7% richer during […]
Everyone in the tech world claims to love interoperability—the technical ability to plug one product or service into another product or service—but interoperability covers a lot of territory, and depending on what’s meant by interoperability, it can do a lot, a little, or nothing at all to protect users, innovation and fairness. Let’s start with […]
Whether you’re using them for next-level selfies or steady tracking shots, gimbals are a must for anyone who wants to maximize the potential of these powerful smartphone cameras we’re all carrying around. But those smartphones are also supposed to be portable, and let’s face it: Gimbals tend to offset that advantage. Weighing in at just […]
It’s too hot for yard sales, but hey: The internet is here for you. Here are the top ten deals on some of the Boing Boing Store’s best gear, just in time for summer. It’s everything from grills to security cameras to MacBook Pros, and they might be as low as they’re ever going to […]
When it comes to getting stats and ideas across quickly, there’s still nothing like a good slide presentation. But the critical word here is “good” – not 20 slides all thrown together with the same stock PowerPoint template. Whether it’s a crucial pitch for a new business or a quarterly report, Slideshop can be a […]