LeEco is laying off a majority of its workforce in the US, and nearly 325 employees (over 50 percent of the US workforce) are soon likely to let go. Not everything has been smooth for LeEco, which is said to have aimed too high too soon. The Chinese brand which started out in a strong manner and expanded to multiple markets, is now facing the heat and is unable to meet he challenges posed by different economies. Also Read - Best smartphones for photography under Rs 20,000 to gift for Father's DayAlso Read - Xiaomi Mi Watch Revolve Active India launch date revealed: When's the launch?
LeEco has barely completed one year in the US, since entering the market last October. The company made tall promises and with the entry also announced a host of LeEco smartphones, televisions and an electric bike for the future. The company tied up with the best of e-commerce portals in the region, and aimed to increase sales by providing high-end products at a relatively cheaper cost.
LeEco failed to achieve targets and has been running into a lot challenges in its plans to stay afloat in a newer economy. The founder and CEO Jia Yueting stepped down from his post in the US market, signalling tough times ahead for the company. Originally known as LeTV, the company rebranded itself once it got into commercial gadgets like smartphones and televisions. The run for the company has been difficult, and within a month of US launch, Yueting shared the challenges and the difficulties the company faced in a letter to employees. Employees were also warned about downsizing, “In order to realize the rapid and positive growth of the Eco operation, we will cut costs to reinforce the awareness of capital control and efficient operation”, Reuters reports.
LeEco has admitted to over-extending itself in not just the US, but also back home in India. LeEco entered the Indian market similarly with huge fanfare and launched multiple products at budget prices, taking on competition like Xiaomi, Oppo, and more. However, post the rapid expansion, the company soon ran into troubles, facing difficulties in staying ahead of the game and resorted to laying off a majority of the workforce. However, the company continues to stress that it is still present in the market, and will continue to aggressively market products. ALSO READ: LeEco CEO Jia Yueting steps down amid financial troubles