The Chinese tech corporation is planning to cut hundreds of jobs at its US subsidiary, a media report revealed. The news comes after the firm was banned from buying American software and components for its products.

The dismissals are expected to affect workers at Huawei’s US-based research and development subsidiary, Futurewei Technologies, according to the Wall Street Journal, citing sources familiar with the matter. Futurewei employs around 850 people across the US, including in Texas, California, and Washington.

It is unclear how many people would lose their jobs, but a source said they were expected to be in the hundreds. Several employees have already been notified of their dismissal, while some of Huawei’s Chinese staff in the US were offered to return to China and remain in the company.

The move follows the decision by the US Commerce Department to restrict Huawei’s access to US-sourced technology and hardware without a license. Earlier in the year, Washington claimed that Huawei’s technology is a national security risk, enabling Chinese espionage and malware activity.

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Huawei, the world’s second-largest vendor of smartphones, insists that it is an independent company with no links with the government. It also challenged the US to provide proof of the espionage allegations.

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