Hikvision is reportedly reducing its R&D workforce, which over 1,000 employees might be laid off.

This situation arises as the US-sanctioned firm faces intensifying business challenges due to geopolitical tensions.

Hikvision has publicly denied plans for any “large-scale layoffs.”

However, it acknowledged making internal adjustments to “optimize R&D operations” at its headquarters and primary sales cities.

This corporate language is common among Chinese firms, often downplaying the true extent of job cuts to mitigate public backlash.

According to Chinese labor law, substantial layoffs must be reported to local authorities, which influences the way companies communicate about employment changes.

Hikvision employed approximately 58,544 individuals at the end of last year, according to its annual report.

Notably, Hikvision was placed on the US Entity List during the Trump administration, following allegations of involvement in human rights abuses against Uyghur Muslims.

This status has limited the company’s access to US components without prior government approval.

Beyond the Entity List designation, the Federal Communications Commission has classified Hikvision’s equipment as a potential risk to US national security, resulting in a ban on the sale of new products in the country.

Hikvision has consistently denied any allegations of wrongdoing.