There doesn’t seem to be a light at the end of LeEco’s current tunnel of problems. The China-based smartphone and electronics company is now rumored to have plans for laying off over a third of its current workforce in the US, as it continues to deal with its many financial issues.
LeEco, which officially launched in the US market in October with devices like the Le Pro3 smartphone with much fanfare, has since sold off its 49-acre property in Silicon Valley, which it previously bought from Yahoo less than a year ago. Earlier this week, the company called off its plans to acquire Vizio, best known for its popular big screen smart TVs. There were even reports that LeEco was a few days late paying the salaries of its US employees for the final two weeks in March.
Now Bloomberg is reporting, via unnamed sources, that LeEco generated less than $15 million in revenue from the US in 2016 after its October debut. The original goal of the company was to bring in $100 million in US revenue during that time frame. As a result of that financial shortfall, LeEco will reportedly let go of about 175 of its current 475 US employees.
A company spokesperson would not comment on the revenue numbers or its layoff plans but if you want some juicy gossip from within the ranks, just check out LeEco’s reviews on Glassdoor.
While it sounds like LeEco, and its CEO Jia Yueting, is still planning to stay in the US market for the time being, it will need to make some big changes in order to boost sales of its smartphones and other products in the country. Whether or not that can be done is something that has yet to be determined.