Huawei unit cuts more than 600 jobs following US sanctions

Chinese telecom giant Huawei said on Tuesday that more than 600 jobs would be lost at a US unit as a result of “curtailment of business operations” caused by Washington’s sanctions on the firm and 68 of its subsidiaries.

The layoffs will come at the Chinese company’s US-based research and development arm, Futurewei Technologies, which is incorporated in Texas, an email statement from Huawei said.

Futurewei employs more than 750 people, according to Bloomberg’s corporate information database.

“Decisions like this are never easy to make. Eligible employees will be offered severance packages, including both pay and benefits,” the statement said.

The Trump administration has put Huawei on its so-called Entity List, which means US companies need a licence to supply it with US technology.