LeEco had big ambitions for its business in the United States when it launched its products in the country with much pomp and circumstance. The reality has been different, though. The company has been facing financial issues which even caused it to abandon its proposed acquisition of Vizio. The company has now confirmed that it’s laying off most of its workforce in the United States.
China-based LeEco has said that it’s laying off a majority of its workforce in the United States. Around 325 employees will be let go, they account for 70% of LeEco’s entire workforce in the country.
LeEco says that a lack of funding is the reason why these positions are being terminated. LeEco says that will continue operations in the United States but will now focus its energies on the niche market of Chinese-speaking households.
LeEco also gained popularity in the United States due to its financing of electric car company Faraday Future. The company unveiled its FF 91 all-electric car at the Consumer Electronics Show 2017.
Faraday Future says that this development is not going to impact its daily operations. It tells The Verge that the company is moving ahead with the development of the FF 91 and its manufacturing plans in North Las Vegas.
No layoffs have been planned for Faraday Future employees at this point in time and the company is working on securing new rounds of funding.