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LeEco cutting its US workforce, plans to sell Silicon Valley headquarters

Posted: , by Luis D.

LeEco could add $10 million to the HQ's selling price if they paid to mow the lawn

LeEco could add $10 million to the HQ's selling price if they paid to mow the lawn


It's no secret that LeEco, a Chinese technology and entertainment company, spent more than it should have in its expansion efforts and is having all kinds of trouble as a result. The brand, which sells a bunch of moderately priced smartphones, TVs, and accessories in the US, also maintains an HQ in Silicon Valley.

Reuters reports that LeEco has been cutting its American workforce and is struggling to pay its debts. In a more worrying act, it plans to sell off its 49-acre Silicon Valley office to Genzon Group. The company had plans to turn the building into an "EcoCity" housing 12,000 employees. The sell-off doesn't mean LeEco has given up on its ambitions, though – the company told Digital Trends that it's researching prospective investors and development partners.

LeEco hasn't announced any sales numbers in the US, but you probably don't see too many people walking around with its handsets or accessories. The company isn't working with the US carriers and its marketing strategies are rudimentary, which diminishes its chances of competing, despite having solid deals on offer.

23 Comments
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posted on 18 Mar 2017, 08:56 3

1. Takeharu (Posts: 254; Member since: 28 Oct 2013)


That's fast af

posted on 18 Mar 2017, 09:00 2

2. kiko007 (Posts: 4999; Member since: 17 Feb 2016)


What'd you expect? Chinese entertainment company + overly unrealistic expansion - customer retention/attention = failed venture.

They were doomed to this fate here from the very beginning. America isn't a price sensitive market lol.

posted on 18 Mar 2017, 09:28 1

3. izim1 (Posts: 1134; Member since: 04 Feb 2013)


Just bought one of their 4k tv's because I needed an extra one and theirs were on sale. Pretty damn good for the price specially with HDR10. Don't they also own vizio?

posted on 18 Mar 2017, 09:40

4. kiko007 (Posts: 4999; Member since: 17 Feb 2016)


Yep...

posted on 18 Mar 2017, 12:47

13. ExLeEco (Posts: 3; Member since: 18 Mar 2017)


Actually the Vizio deal hasn't closed.

posted on 18 Mar 2017, 12:59

16. kiko007 (Posts: 4999; Member since: 17 Feb 2016)


For real? Damn....

posted on 18 Mar 2017, 09:42 2

5. aegislash (Posts: 940; Member since: 27 Jan 2015)


Holy sh*t...already? As bad as it is to see a company go downhill, I honestly find it hilarious considering their CEO is an egotistical narcissist who spent a majority of the US launch event just talking about himself, rather than even remotely going into detail about the products LeEco was bringing to the US.

posted on 18 Mar 2017, 10:19 2

11. k9luvr (Posts: 109; Member since: 17 Oct 2016)


Are you talking about the president of LeAco or President of the US

posted on 18 Mar 2017, 11:22 1

12. aegislash (Posts: 940; Member since: 27 Jan 2015)


Well I was talking about the LeEco President....but you're right, the same could be applied to Trump as well.

posted on 18 Mar 2017, 09:46

6. amasog (Posts: 421; Member since: 22 Aug 2013)


Hu!!! Leeco? What is leeco?

posted on 18 Mar 2017, 09:51 2

7. NarutoKage14 (Posts: 798; Member since: 31 Aug 2016)


Doesn't the owner also own Faraday Future? That's another venture that may fail this year due to overly fast expansion.

posted on 20 Mar 2017, 06:02

22. TerryTerius (unregistered)


First thing that popped in my mind.

posted on 18 Mar 2017, 10:16

10. ibend (Posts: 6467; Member since: 30 Sep 2014)


I see that coming...
lol...

building HQ wont help them getting more customers.. but, building 10-20 stores and service centers across states will be more useful (and could be cheaper too..)

posted on 18 Mar 2017, 12:50

14. ExLeEco (Posts: 3; Member since: 18 Mar 2017)


Look up LeEco on Glassdoor

posted on 18 Mar 2017, 12:53

15. ExLeEco (Posts: 3; Member since: 18 Mar 2017)


Oh and a correction; the 49 acres is mostly a parking lot used by Levi Stadium. The are maybe 3 teardown builds on the sight. They paid Yahoo $225M for the property mid 2016.

posted on 18 Mar 2017, 15:20

17. kerginaldo17 (unregistered)


Leeco had eyes larger than his belly.

posted on 18 Mar 2017, 15:41

18. BlackhawkFlys (Posts: 576; Member since: 07 May 2014)


Expanding very quickly always result in failure. We experienced it. My cousin experienced. And everyone looking for a quick expansion will fail... You need to make a good name and strong position in one market then use the revenue generated my that market to expand into your nearest market. To enter a strong market such as US your product has to be extraordinary. Xiaomi could have done great by moving into the US market with Mi Mix but they missed their chance. They couldn't even meet the product demand in their home market.

posted on 18 Mar 2017, 21:59

19. kishore3k (Posts: 94; Member since: 11 Mar 2016)


Now I know why xiaomi is too shy to enter into US

posted on 19 Mar 2017, 06:28

20. Chuck007 (Posts: 1282; Member since: 02 Mar 2014)


Poor execution pretty much ruined their chances of making it big in America.

How else would people respond when you blatantly called out leading companies crap from the get-go while proving nothing with your launch products (let's face it NONE of their products stood out)?

posted on 19 Mar 2017, 10:01

21. kerginaldo17 (unregistered)


In addition the smartphone market is very saturated.Different of the old time of Nokia where the manufacturers counted on the fingers of one hand

posted on 20 Mar 2017, 07:39

23. Doakie (Posts: 2212; Member since: 06 May 2009)


Ugh. I had high hopes LeEco would have a successful move into the USA, I liked the idea of another large tech company competitor to Google/Apple/Amazon/Microsoft/Facebook. I liked their phone until I saw the UI. The software bloat was exactly what stopped me from buying one. The price was good but the UI looked too​ heavy for the US market. I honestly think they'd have had a good run if they launched the LeEco LePro 3 with a Nexus like Android experience and just their LeEco apps locked in there. I would have one right now, and I'd probably also be watching all their streaming things as well.

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