Chinese telecommunications company Huawei is preparing to shut down hundreds of workers in the United States, Wall Street Journal reports. The company has beaten in recent months after the Trump administration has de facto banned US sales to the company, citing potential security threats and in the midst of the ongoing US-China trade war.
According to WSJ Huawei plans to lay off workers at a survey subsidiary, Futurewei Technologies, which runs a number of research laboratories. Huawei allegedly will allow some Chinese employees to move back to China to remain in the company. Some employees have apparently already been notified that they will be released, with other layoffs scheduled in the near future.
In May, the White House issued a power of attorney that allowed the US Trade Secretary to grant the US authority to prevent US companies from selling to entities constituting a threat to national security. As a result, Huawei is no longer able to buy any of the parts and software it needs for its products. While it appears as if Huawei can make some statements from the US ban on sales last year, the Trump administration has indicated that it will probably not change until the two countries resolve their differences.