After Washington placed Huawei, a Chinese tech giant, on the trade blacklist, the company decided to cut more than 600 jobs in their US research Unit.
Huawei explained why they decided to cut down jobs, they said they did this due to “curtailment of business operations caused by the US”.
Washington recently added the Chinese tech giant in their “entity list” two months ago.
Any company that is listed on the “entity list” is not allowed to trade with any US firms.
This comes after the high tensions between China and the United States of America.
More than 600 jobs at the Futurewei, a research and development unit in the US, based in California has been cut off.
In a statement that was released by Huawei, they said, “Futurewei Technologies announces a reduction in force, directly impacting over 600 US positions.”
It became effective since 22 July.
According to a report that was published by Bloomberg, Futurewei employs more than 750 people.
The company added in the statement, “Decisions like this are never easy to make. Eligible employees will be offered severance packages, including both pay and benefits.”
Huawei is the world’s largest equipment maker of telecoms, and they have been accused of being a threat of security by the United States.
But the tech giant has denied the claims.
Washington also claims that the tech giant is working directly with the government of China and is providing data to them of its telecom users.
In a report that was published by the Washington Post, it said that Huawei has secretly helped North Korea build and maintain a commercial wireless network that is used in the country.