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Huawei’s US research arm slashes jobs as trade ban bites

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SANTA CLARA, CALIFORNIA/HONG KONG: China's Huawei Technologies laid off more than two-thirds of the 850-strong workforce at its Futurewei Technologies research arm in the US, after being blacklisted by the government.

Futurewei, which has offices in Silicon Valley and the greater Seattle, Chicago and Dallas areas, said it cut more than 600 jobs. The unit, set up in part to work with universities and researchers, recorded US$510 million (S$700 million) in operating costs last year.

Huawei is the world's largest telecommunications equipment manufacturer.

The US Commerce Department in May placed the company on its "entity list" of organisations that pose security risks. It has filed charges against Huaweialleging theft of trade secrets and other crimes.

Huawei said the job cuts, effective July 22, were "due to the curtailment of business operations" caused by the US government's actions.

The trade blacklist has made it illegal for Futurewei to transfer sensitive technologies to its parent. The blacklist also restricts Huawei from buying products from US tech companies. An employee not affected by the layoffs said work had come to a standstill since Huawei was blacklisted.

In a separate development, Huawei said it plans to invest US$3.1 billion in Italy over the next three years. - REUTERS, CHINA DAILY/ANN

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