Huawei is laying off more than 600 workers in the United States. That is one of the proofs that the Chinese technology giants are currently struggling with the new restriction from Trump administration. The current Huawei massive job cut is announced on Tuesday.
It will take place at Futurewei. Futurewei is the United States-based research development subsidiary. The company itself blamed the layoffs on the Us’s restrictions. Besides the job cut, the same restriction also affects Huawei 2019 goal and also Huawei sales.
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Huawei previously warned that any pressures placed upon it by the US will trigger the loss of the US’s jobs. As reported by the Wall Street Journal last week, the layoffs were imminent for Huawei employees based in the United States.
Many experts think that the restriction is the embodiment of US insecurities. As publicly known, the WSA is vulnerable in cyberspace. Many people think that the move is to save the USA. On the same report,after Huawei massive job cut, it also threatened to not go back to US market again, if they continue to restrict Huawei.
The USA restriction
In mid-May, President Donald Trump signed an executive order. The executive order forbids US companies from using telecommunication equipment from sources the administration deems a national security threat. Even after the tentative truce, the effect still exist.
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The Trump administration refers to China as the national security threat. That action directly targeted China and Huawei, a leader in 5G technology and global business. Both of them have a revenue of more than $100 billion. The US has since said it would ease restrictions on the ban, but the details remain unclear.
The ban has prevented Futurewei employees from communicating with their coworkers in Huawei’s headquarters in China. Futurewei has offices in Dallas, Silicon Valley and a small handful of other American cities.
Huawei doesn’t have a big presence in the United States. However, the company is the sole provider of networking equipment to many rural American internet providers.
The United States’ actions against Huawei are taking a serious toll on the company’s bottom line. Huawei recently said it will miss sales forecasts by about $30 billion over the next couple of years.
