LeEco has reportedly cut more than 300 jobs at its US business, which is about 70 percent of its total workforce in the country. According to Reuters, the cuts are aimed at increasing focus on the company's home market of China.
“The breadth of our business model is capital intensive,” LeEco said in a statement and notes that this “made it difficult in the past few months to support” all its businesses. “As a result, the capital we do have will have to be highly focused resulting in a significant restructuring and streamlining of our business, operations and workforce,” the company added.
This news comes just a few days after the company's Founder, Jia Yueting, resigned from his post of CEO from the company’s publicly listed unit, Leshi Internet & Information Technology Corp. However, Yueting will remain as a CEO of the LeEco business.
LeEco is facing a severe cash crush following rapid expansion into foreign markets like India and the US. In an interview with Digit, the company’s India COO, Alex Li had said that the company will not exit India, but will operate with a small team in the country. Back in November last year, Yueting pledged to reduce his income to CNY 1 and slow down the pace of expansion, while moving the company to a more moderate pace of growth.