Huawei employees worry about lay-offs after tougher US sanctions

Huawei employees worry about lay-offs after tougher US sanctions

  • Staff describe ‘state of war’ as company pivots to home market in bid to survive

Huawei employees are becoming increasingly worried about lay-offs after the US announced tougher sanctions that some analysts have called a “death sentence” for the Chinese telecoms equipment group. 

Staff described a “state of war” in the company, with the new restrictions threatening to cut off the supply of semiconductors Huawei needs to power its 5G telecoms, smartphone and other businesses.

“Our company has been urging us to get used to this state of war,” said an employee in the company’s research and development department. “But we’re still worried. Will our benefits be sacrificed, will the lay-offs finally land on me?”

The tougher US sanctions, which were announced this week, were designed to close any loopholes in previous restrictions imposed by Washington as it cracks down on Huawei and other Chinese technology groups.