Huawei's US layoffs echo broader Chinese retreat from Silicon Valley

Trade war and slowing growth have companies rethinking costly American operations

20190725 CA: Huawei logo

Huawei's offices in Santa Clara, California: The Chinese company announced it is laying off 600 workers from its U.S. research subsidiary. © AP

YIFAN YU, Nikkei staff writer

Palo Alto, U.S. -- Rumors that jobs cuts were coming had been circulating at Huawei's U.S. research arm for months, but employees at Futurewei say the scale of the downsizing took them by surprise.

The Chinese telecom equipment giant announced on Monday that it was cutting a total of 600 jobs at various Futurewei offices -- roughly 70% of the total workforce -- citing a "curtailment of business operations" caused by the U.S. placing it on an export blacklist.

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