By Dan Strumpf

Huawei Technologies Co. is planning extensive layoffs at its U.S. operations, according to people familiar with the matter, as the Chinese technology giant continues to struggle with its American blacklisting.

The layoffs are expected to affect workers at Huawei’s U.S.-based research and development subsidiary, Futurewei Technologies, according to these people. The unit employs about 850 people in research labs across the U.S., including in Texas, California and Washington state.

Huawei declined to comment. The exact number of layoffs couldn't be determined, but people familiar with the matter said they were expected to be in the hundreds. Some of Huawei’s Chinese employees in the U.S. were being given the option of returning home and staying with the company, another person said.

Futurewei employees have faced restrictions communicating with colleagues in Huawei’s home offices in China following the May 16 Commerce Department decision to put Huawei on its so-called entity list, which blocked companies from supplying U.S.-sourced technology to Huawei without a license, according to these people.

Several employees have already been notified of their dismissal, while additional planned cuts could be announced soon, these people said.

The planned layoffs are the latest setback for Huawei following its U.S. blacklisting. This has limited Huawei’s ability to buy critical U.S. components and software for its products, which include its smartphones and cellular base stations that are popular outside the U.S. Huawei bought $11 billion worth of American technology last year.

A reprieve for Huawei appeared to be in sight after President Trump said at the Group of 20 summit at Osaka, Japan, last month that he would allow some tech exports to the company to resume. Beijing sees an easing of restrictions on Huawei as a precondition for any trade deal with Washington.