Ailing LeEco Will Layoff 325 U.S. Employees
May 23, 2017, 1:17 PM by Eric M. Zeman
LeEco today said it will largely erase its corporate presence in the U.S. as it refocuses its efforts here. The company, which exists as the YouTube/Netflix of China, first announced plans enter the U.S. market at the Consumer Electronics Show in January 2016. It followed nine moths later with a splashy October 2016 press conference launching phones, TVs, and connected bicycles — all of which were to be sold online directly to consumers. The company expanded too swiftly, ran into cash problems, and scaled back plans earlier this year. "While we’ve made progress in growing our distribution channels, the challenges with raising new capital have made it difficult in the past few months to support all of our business’ priorities," said the company in a statement. Thanks to the cash crunch, LeEco cannot support its U.S. employees and will let up to 70%, or about 325, go. "Our goal is to continue to gain momentum. In the past few months, we have gained a large foothold in Chinese-speaking households in the U.S. by offering tailor-made products and content for this community. We believe this provides us an opportunity to build on our strengths and grow from there." LeEco didn't explicitly say which products it will continue to offer U.S. consumers, nor how swiftly its U.S.-based employees will be let go. Just yesterday, the company's founder stepped down from his CEO role at one of LeEco's major business units.
source: LeEco
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