The Chinese telecommunications firm is said to be preparing to get rid of hundreds of workers as it struggles amid a ban on US sales to the company.
According to the Wall Street Journal, the company is looking to lay off employees at its Futurewei Technologies research subsidiary.
It's said that Huawei will give some of its Chinese employees the chance to relocate back to China to stay with the company.
The report comes after US president Donald Trump confirmed that the Huawei P30 Pro, P30 and Mate 20 Pro will get the Android Q update.
They were recently added to a list of companies that US firms cannot trade with unless they have a license, amid the fears of national security concerns.
But Huawei have repeatedly denied allegations that the use of their products presents security risks, and says it is independent from the Chinese government.
Now Trump has revealed he will allow the US business to "sell Huawei equipment" which has "no great national security problem with it".
Speaking "US companies can sell their equipment to Huawei.
"We're talking about equipment where there's no great national security problem with it.
"I said that's okay, that we will keep selling that product, these are American companies that make these products.
"I've agreed to allow them to continue to sell that product so that American companies will continue."
Huawei recently admitted the US' decision to put them on a trade blacklist "sets a dangerous precedent" that would harm billions of consumers.
Song Liuping, the firm's top legal officer, said at a press conference: "Politicians in the US are using the strength of an entire nation to come after a private company.
"This decision threatens to harm our customers in over 170 countries, including more than three billion consumers who use Huawei products and services around the world.
"By preventing American companies from doing business with Huawei, the government will directly harm more than 1,200 US companies. This will affect tens of thousands of American jobs."