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LeEco reportedly couldn't pay its US employees on time last month
If all the reports are to be believed, LeEco’s had a difficult few months. The Chinese tech company, which has dealings in smartphones, electric cars and owns a Netflix-like streaming service, has been struggling for cash since last year. The latest news, which arrives from Bloomberg, suggests it may not have even been able to pay its US workers on time last month.
LeEco’s US employees are usually paid on the 15th and last day of the month, wrote Bloomberg in a report yesterday. However, LeEco apparently told employees recently that the March 31 payment would be delayed until April 4.
LeEco allegedly said that this payment delay was caused by issues moving money from China, which is also said to be the reason behind LeEco’s recent troubles finalizing a deal to purchase TV manufacturer Vizio.
Regarding similar matters, Bloomberg also stated: “Over the past few months, LeEco also let go of a number of U.S. employees, according to people familiar with the matter. Also, year-end bonuses were not paid to many LeEco U.S. employees, one of the people said.”
LeEco’s financial troubles were thought to have been stemmed in January when it received an additional $2.2 billion in funding. It seems it’s not out of the woods yet, though: last month, it emerged that LeEco was seeking to sell its 49 acre Silicon Valley plot of land originally intended to be its US headquarters.
We already knew LeEco was struggling financially, so this five-day wage delay might not seem like much in the grand scheme of things. Once a company fails to pay staff on time, though, it’s an indication of serious problems.
We’ll keep you updated on LeEco’s woes as we learn more.