Huawei is believed to be firing off pink slips to staff in the US following recent public-sector sales bans issued by the administration of President Trump.
The US government action hasn't just encompassed sales of networking equipment to the US public sector, but have also involved pressue on mobile and fixed-line network operators.
Smartphone sales have been hit, too, with networks opting to ditch plans to offer Huawei devices to customers following government pressure.
The lay-off claims come via Android Headlines, whose sources claim that the company is in the process of laying off employees "across the board" in the US. The extent of the layoffs, which have yet to be confirmed by Huawei, remain unclear.
However, the insider tells Android Headlines that the atmosphere at Huawei USA is "understood to be less than ideal, with a group of employees also quitting the company last week".
According to the company's website, Huawei currently employs 1,200 staff in the US across 13 offices and six R&D centres.
The source speculates that the reason for the job cuts, which come after Huawei axed two per cent of its US workforce last August, are down to a US government crackdown on the company over claims that Huawei's products pose a threat to US national security.
Most recently, US government pressure is said to have forced electronics retail chain Best Buy to cut ties with Huawei and stop selling its smartphones.
Following similar pressure from US gov officials, AT&T and Verizon recently backed out of deals to flog Huawei smartphones to customers.
What's more, earlier this year, six intelligence officials, including the heads of the CIA, FBI, NSA and the director of national intelligence, warned American citizens not to use smartphones from the Chinese companies Huawei and ZTE.
FBI director Chris Wray said at the time: "We're deeply concerned about the risks of allowing any company or entity that is beholden to foreign governments that don't share our values to gain positions of power inside our telecommunications networks."
"That provides the capacity to exert pressure or control over our telecommunications infrastructure. It provides the capacity to maliciously modify or steal information. And it provides the capacity to conduct undetected espionage."
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