LeEco has been struggling to keep their footing in the US since they attempted an aggressive expansion here a couple of years ago. The company’s spiritual launch was glamorous, with promises of futuristic cars and bikes, VR headsets, TVs, and phones.
But they chewed through cash like a dog on a bone in this attempt, and they’re struggling. CNBC is reporting that the company will soon announce layoffs of over 85% of their US workforce, with the company’s roster going from more than 500 down to just about 60. Previous rumors suggested only a third of the workforce would get cut.
It’s said the remaining staff will be streamlined to focus on promoting their content streaming platform for Chinese-American viewers.
This comes shortly after LeEco CEO Yueting Jia stepped down from his position. Jia remains on the board of directors for the parent company in a restructuring shuffle that LeEco hopes will get their business back on the right track.
We always felt like LeEco was moving a bit too fast with their expansion efforts, especially considering the company had seemingly erected their flag on US soil overnight and even had their eyes set on buying up major US companies like Vizio. It simply hasn’t worked out, and for better or worse they’re learning a pretty valuable lesson, so we’re sure their future efforts will be approached much more carefully.