With ongoing financial difficulties, Chinese tech company LeEco has decided to wrap up 325 positions in its US workforce — a 70 percent reduction, CNET reports.
The news comes in the midst of parent company Leshi’s financial troubles which, in no small part, were brought on from spending on its US expansion. The campaign began in October with the debut of 4K TVs and smartphones with a tie-back to exclusive digital content ranging from live sports to movie productions. A smart bike was promised (it won’t be delivered at this point) and investments into autonomous car production in Nevada were publicized. Then-CEO Jia Yueting said that the company had 500 employees in the country with more being hired every week.
The company is rolling back on its ambitions to grow its hardware sales to rival Samsung and Apple. There’s no word on if it will keep its 46-acre property in Santa Clara, California, but it will have no engineering presence in San Diego and will centralize operations in San Jose. The company’s path now is selling content streaming to Chinese-language households in the US — IDC estimates about 4 million households at most will be served.
Over the weekend, Jia Yueting replaced himself as CEO of Leshi, though he remains the company’s chairman.
“We are currently on a difficult path,” Jia wrote in an internal memo. “Thank you everyone for sticking with us all this time.”