Huawei, the Chinese telecom giant, stated on Tuesday that more than 600 jobs would be lost at a US unit as a result of “curtailment of business operations” because of Washington’s sanctions on the firm and 68 of its subsidiaries.

An email statement from Huawei said, dismissal will come at the Chinese company’s US-based research and development arm, Futurewei Technologies, which is incorporated in Texas. According to a database of Bloomberg’s corporate, more than 750 people work at Futurewei. “Decisions like this are never easy to make. Eligible employees will be offered severance packages, including both pay and benefits,” the statement said.

Huawei has been enlisted by the Trump administration in its so-called Entity List which means US companies need a licence to supply it with US technology. Huawei is the leading company of next-generation 5G wireless technology but it is remaining barred from developing 5G networks in the United States. The Trump administration is trying to convince its allies to do the same. 

Huawei has denied an accusation by Washington that it was working directly with the Chinese government. During the meeting, on the sidelines of the G20 summit in Osaka last month, Trump met China’s Xi Jinping and said he would ease the punitive measures on Huawei as long as equipment sold to it did not pose any risk to national security.

Last week in the Washington Post it was claimed that Huawei secretly partnered with a Chinese state-owned firm Panda International Information Technology on projects in North Korea over at least eight years. The Post also stated that it has helped North Korea to build and maintain the country’s commercial level.

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