Chinese television company and smartphones, Leeco, said it would cut more than 300 jobs in its operations in the US, nearly three-quarters of its local workforce as the fixed-fund conglomerate streamlines the Operations in response to the shortage of cash.
The cuts are aimed at focusing on domestic market and Leeco online TV market and online content after founder Jia Yueting last year said that the expansion was too fast and costly.
Leeco extends from video streaming to televisions, smart phones, sports and even electric vehicles in just over a decade, employing 14,000 people worldwide at the end of last year.
“The scale of our business model requires a lot of capital,” Leeco said in a statement. This “made it difficult in recent months to support” all its activities.
“As a result, the capital we have to be very concentrated, which results in a significant restructuring and rationalization of our operations, our company and our people.”
Reuters previously reported, citing a person familiar with plans such as Leeco intends to reduce US staff to about 60 people. This would be similar to “500” when Leeco officially launched operations in the United States in October.
The cuts will total $ 325, said Teri Daley, chief of Leeco Communications, including the high-level “leadership” agreements formerly Samsung Electronics and Qualcomm.
She declined to specify the size of the remaining labor force, but said an office in San Diego, California, so close that her presence in Los Angeles would be reduced.
Disease of large companies
Leeco, led by founder Jia resumed operations overseas, made cuts in India, sold property in Silicon Valley and withdrew to an agreement to buy Vizio United States TV manufacturer.
Jia told reporters on Sunday that cuts were meant to eliminate low-efficiency workers, especially unlisted companies.
Last October, Jia said that a new North American campus planned will host 12,000 employees. But in November, said Leeco faced a “great company of the disease” and suffered from a shortage of cash.
In March, Reuters reported that Leeco had agreed to sell the land for the campus.
While the United States cuts are part of a strategy to focus on the Chinese market, companies in the country, such as smart phones and sports, could also face major cuts, said the person knowingly plans to reduce jobs Work in the United States.
“They will focus more on China,” the person said. “If you are looking to follow trends in the future, you are likely to see continued attention to the television business.”