Smartphone and TV maker LeEco lays off 325 US employees, postpones U.S. expansion plans indefinitely

Smartphone and TV maker LeEco lays off 325 US employees, postpones U.S. expansion plans indefinitely
Confirming the recent rumors, smartphone and TV maker LeEco has officially laid off 325 of its San Diego employees and postponed its plans for further US expansion until it's able to secure its financial situation. In addition to many good people losing their jobs, this means no new LeEco products are to be expected within the near future.

The Chinese company made a bold entry into America, offering a big portfolio of smart products and consumer electronics. It did so quite quickly and without spending the time to know the market or build up brand awareness through well-positioned advertising. Thus, sales have been unimpressive. Moreover, penetrating the saturated smartphone market in America is extremely difficult for anyone, even if the price-to-performance ratio of their products is compelling as it's the case with LeEco.

In addition to layoffs and restructuring, the company sold off land property it acquired with the intent of establishing a Silicon Valley HQ. It also dropped its plans to acquire Vizio, maker of affordable smart TV sets, due to "regulatory headwinds" and, possibly, lack of resources to complete the transaction. The company CEO resigned from his position and chose to remain chairman. LeEco also canceled EcoPass, its streaming content subscription, and re-directed owners of its products to AT&T's DirecTV Now service.

LeEco will spend the rest of the year looking for investment deals to recover its financials and prepare targeted content for Chinese-speaking people in America, a niche in the digital market that could help the company find its feet.

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source: Variety via TalkAndroid

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6 Comments

1. Doakie

Posts: 2478; Member since: May 06, 2009

WELL... Sure glad I didn't buy one of those LeEco Le Pro3's now. I've been tempted over and over by their great prices but the heavy skin made it unattractive. I wonder if they had come into the market at the price point they did, a very stock skin of Android with only their streaming services preinstalled and a home button that linked to their streaming service if people would have given them the proper chance? Because their hardware bang for the buck was unmatched. People just didn't like the heavy skin.

2. neela_akaash

Posts: 1239; Member since: Aug 05, 2014

Actually they are trying to be another Xiaomi. But they forgot that the Xiaomi does a complete market research and cost calculation before expanding their arms in a new territory.

3. TeriusRose

Posts: 108; Member since: May 12, 2017

I can say with 100% certainty the issue isn't just people "not giving them a chance", but primarily the fact that next to nobody (in the US) had even heard of them to want to give their wares a shot in the first place. And I garuntee you that the average cunsomer has no idea whatsoever about the differences between stock android and a skinned version. That is almost exclusively a complaint in the tech community.

4. rnagic

Posts: 215; Member since: Jul 13, 2014

I completely agree with TeriusRose. The average consumer doesn't really care about the ui. Tech junkies, or people that frequent these kinds of websites, represent a very small portion of the consumer market.

5. btbotimtim

Posts: 272; Member since: Dec 08, 2010

those phone makers should have released their handsets through 4 major carriers.

6. bvalde09

Posts: 191; Member since: Nov 22, 2011

Is a shame they are a good brand

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