Huawei Cuts Some US Staff
Huawei Technologies Co. Ltd. has cut several staff in its Plano, Texas, offices, as well as in other locations around the U.S. The company hasn't revealed the numbers behind the cuts, but our sources say somewhere around 50 (mostly marketing employees) were let go in May.
When contacted by Light Reading, the company provided the following statement:
We recently consolidated and streamlined our organization to sustain a profitable infrastructure business in the U.S. The new organizational structure will allow Huawei to continue to provide US carrier customers with the best technology solutions while maintaining our cost structure. Huawei’s commitment to the US infrastructure market and our US carrier customers is unchanged.
Huawei's commitment may be unchanged, but one source close to the company says Huawei's service provider clients are skittish because the vendor is still under investigation by the U.S. House Permanent Select Committee on Intelligence (HPSCI). That committee's spokeswoman told Light Reading last month there is no update available on what the investigation has uncovered. (See Australia's (Safe) Bet Against Huawei.)
The government's investigation of Huawei is making it tough for the vendor to get traction inside of networks that have the federal government as a customer, the source sources. "Federal agencies have made it clear that they will not have any of their traffic running over Huawei equipment," the source says.
— Phil Harvey, Editor-in-Chief, Light Reading