Report: Chinese Telecom Giant ZTE Set To Slash 3,000 Jobs

China-based telecom and network giant ZTE is slashing 3,000 jobs, representing about 5 percent of the company's 60,000 employees.

The layoffs from the Shenzhen, China-based vendor -- which is a rival of Huawei in the region -- stems from its struggling handset business in China, a decline in worldwide smartphone shipments, and an upcoming ban on exports by U.S. companies to ZTE, according to a report by Reuters, which first reported the layoff news.

ZTE operates in more than 160 countries, with a broad portfolio of telecom and networking products. Approximately 50 percent of its $15 billion in annual revenue is delivered via the channel, according to research firm Gartner.

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The company did not respond to a request for comment by press time.

The impending ban on exports by U.S. companies to ZTE is due to the company allegedly breaking the government's sanctions on sales to Iran, according to Reuters. The U.S. Commerce Department is expected to impose the ban next month. Approximately one-third of its components comes from U.S. companies including Microsoft, Qualcomm and Intel, according to Reuters.

The vendor is listed in several of Gartner's 2016 Magic Quadrants including Wired and Wireless LAN Infrastructure, as well as Group Video Systems. ZTE offers a full range of switches, WLAN access points, videoconferencing offerings and controllers, with 60 percent of its revenue coming from Asia-Pacific, according to the research firm.

The company also manufactures mobile offerings include tablets and smartphones. At CES last week, ZTE said it is working on its first Android Wear smartwatch that it expects to launch later this year.

ZTE's stock fell from $15.63 per share Jan. 6 to $14.98 as of Monday afternoon.