Huawei is one of the Chinese tech giants that have been directly affected by the trade war between the United States and China. A while ago, the president of the United States, Donald Trump, placed a ban on Huawei which prevented tech companies in America from selling their products to Huawei. At the time the market share of companies related to Huawei in the United States and China plummeted. Google announced that it was no longer interested in doing business with the Chinese tech giant.
Huawei Lays Off 600 Workers In The United States
According to reports on CNN, the tech giant, Huawei, has announced that it would be letting go of 600 of its American based workers. The announcement cited business restrictions imposed by Trump as the root cause of the layoffs. The company said that even if it is dedicated to working in compliance with the rules and regulations of the United States, the restrictions have led to a significant loss in profit hence the layoffs.
Futurewei, the United States-based research, and development subsidiary of Huawei said that it wasn’t an easy decision to determine which workers to layoff and which to keep. Before now, the company had said that the increasing pressure from Trump was going to cost many United States-based residents their jobs. The chief security officer at Huawei, Andy Purdy, had this to say; “Due to the vulnerability in cyberspace in the United States, the government is trying to do everything they can to maintain national security. However, they are going too far. If we are made to do things our way, we will be okay. Long-term, however, I do not know if Huawei will return to America and I believe it will hurt the country.”
The company has announced that it would have to reduce its capacity again in the next two years if it is to continue with operations.