Rumored LeEco job cuts mean only 300 on US payroll
Chinese electronics manufacturer LeEco is said to be cutting 175 jobs in its US unit. 300 employees will remain, Bloomberg reports from a source. Revenues for the region were also well below target, with less than $15 million made out of $100 million estimated.
These developments come on top of the company officially ending its acquisition bid for TV maker Vizio and in spite of a $2.2 billion investment from a Chinese property firm. The financial situation at the parent company has proven tolling on share prices, especially as a margin call was made earlier this year.
At the company’s official product launch event in October, chairman Jia Yueting claimed 500 employees to his name in the states “with more being added each week”. With revenues trickling in and the company’s Faraday Future smart car factory at a construction standstill in Nevada, though, the only thing keeping a third of the workforce at LeEco US employed right now is an still-accumulating fund for severance packages.