Futurewei Technologies Inc., a research and development subsidiary of Huawei Technologies Ltd. Inc., will lay off 38 employees from its Plano location by Sept. 23, according to a report from the Texas Workforce Commission. This decision is part of a 600-person layoff from the company.
Huawei lists its addition to the “Designated Entity List” by the U.S. Department of Commerce Bureau of Industry and Security as the reason for depleting the number of positions in the U.S., effective July 22. The commission received notice of the layoff July 22.
“Decisions like this are never easy to make,” the company said in a statement. “Eligible employees will be offered severance packages, including both pay and benefits. Futurewei will continue to operate in strict compliance with U.S. local laws and regulations.”
The tech company was listed as “covered telecommunications equipment or services” with ties to the People’s Republic of China on The John S. McCain National Defense Authorization Act for fiscal year 2019, signed by President Donald Trump in August 2018, prior to the company’s addition to the entity list by the U.S. Department of Commerce.
Huawei has taken legal action against the U.S., claiming the listing of the company “denie[d]Huawei any procedure for providing rebuttal and escaping sanction,” in May.