The U.S-based research and development arm of Huawei Technologies Co Ltd called Futurewei Technologies Co has begun cutting its head count.
According to a report by Reuters which cited people with the knowledge of the matter, Futurewei could have laid off close to 70% of its 850 direct employees at its Silicon Valley heaquarters.
The lay off became unstoppable after the U.S. Department of Commerce placed China’s Huawei on its ‘Entity List’, stigma that prevents the telecoms giant from doing business with any American company.
Since Futurewei is an American operation developing research based services to Huawei, its operations could not continue.
Huawei did not comment to the report.
However, Reuters report said several dozens of Futurewei staff were packing and exiting the building citing an official order to go home.
“On the 17th of May, Huawei asked everyone at Futurewei to upload everything to the Huawei cloud, right before the ban took effect,” that employee said. “After that basically Futurewei has stopped doing any work – almost stopped everything.”
Global telecoms industry experts told PageOne’s global business desk that Huawei could be looking at other countries to warehouse Futurewei’s research work since it could no longer collaborate with universities and researchers locally in the U.S.