On May 24, Reuters reported that Chinese company LeEco said its us business would lay off more than 300 people, about three-quarters of the local workforce. The cash-strapped Letv needs to simplify the global business to escape cash shortfalls. Le apparent response said in a statement: "our business model belongs to the capital intensive, it is difficult to support in the past few months the company (all the business). Therefore, we will have to put capital owned by a highly concentrated in major restructuring, streamline field of business, operations, and human."
Cuts aimed at making Letv more focused on domestic market with the core of the television and online content business, company founder Jia Yueting said last year that Letv expanding too fast and high cost.
Teri Daley, managing director of Letv communications, said the total would be 325 jobs, including those from samsung electronics and qualcomm. She declined to disclose details of the remaining staff, but said the San Diego office would be closed and the Los Angeles business would be streamlined.
The Letv plans to cut the number of U.S. workers to about 60, Reuters reported, citing people familiar with the matter. When Letv officially launched its us operations last October, the number of us employees was "around 500".
Letv took only a little more than a decade to expand its business from video streaming to televisions, smartphones, sports and even electric cars. By the end of last year, there were 14,000 employees worldwide.
In the past few months, the news of Letv's business lines has been spreading as Letv's unlisted sub-ecosystems have been in financial trouble. There were media reports that Letv was planning big layoffs, planning to cut the sales system by more than half, and Letv by 70%. The layoffs involve multiple Letv companies such as letv, Letv holdings and Letv sports.
On May 21 Letv, chairman of the board of directors at the annual meeting of the media to meet Jia Yueting le networks announced his resignation as President in Letv Jia Yueti
