UPDATE: JULY 23, 2019 — BOOM: HUAWEI LAYS OFF MORE THAN 600 WORKERS AT FUTUREWEI
The company has announced that it has laid off more than 600 workers at its has laid off more than 600 workers from its U.S.-based research arm known as Futurewei as a direct result of being placed on the government’s entities trade blacklist.
Because of the oppressive Red Chinese surveillance-state connections with Huawei and the persistent spying and theft of intellectual property from the U.S. military and American corporations, Huawei equipment represents a clear and present security risk to American interests. Therefore, Shenzhen, China-based Huawei Technologies has been sanctioned by the United States Government and U.S. entities will not be allowed to provide certain communications products and knowledge to Huawei or import certain products that are critical to the build-out of the 5th generation communications platforms in the United States.
According to the U.S. Department of Commerce, Huawei and its affiliates are on an “entity list,” which requiring vendors and customers to receive licenses to provide American technology to Huawei or use Huawei technology in their products and platforms. Waivers are both time-consuming and expensive to obtain. The language of the restriction states “any unlicensed transfer of any technology of any sort by anyone from the U.S. to Huawei is prohibited.”
As a result of severe financial pressures, Huawei is planning extensive layoffs in the United States, initially at its U.S. research and development subsidiary known as Futurewei Technologies based in Santa Clara, California. Approximately 850 employees work at Futurewei research and development facilities in the continental United States.
However, nothing is written in concrete as two U.S. factions battle over the restrictions. On the national defense side, the sanctions are critical to protecting the interests of the United States. And, on the commerce side, some say that a relaxation of the sanctions can be used to force China to negotiate on a number of issues including tariffs, currency manipulation, and the theft of intellectual property.
The handwriting is clearly on the wall and those affected should be considering contingency plans.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?