Jul 15th, 2019

Huawei’s relationship with the US is rocky at best. The last few months have been difficult for the company as the US government has threatened them, banned them, given them reprieve from the ban, and unbanned them. It’s been a rollercoaster, though a predictable one.

However, the fact that Huawei is now unbanned and allowed to do business with US companies does not mean that it’s smooth sailing from here. The company is sure to face challenges in the US market continuing on, and they know this. The consequence of this is a major set of layoffs at Huawei’s research and development subsidiary Futurewei Technologies.

The company currently employs 850 people across the US, and the layoffs may be be in the hundreds. Cutting a huge portion of your staff is never a good sign and simply unfortunate for those who are losing their jobs. The upside is that some Chinese employees are being offered to move back to China and continue working there.

This kind of move was inevitable, and until prospects in the US market start to look better, we expect Huawei to not be pushing hard for a US presence. While unfortunate for us consumers, it’s the best move amid the current political situation.

Source: Wall Street Journal

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