LeEco will all but end its corporate presence in the U.S. as it refocuses its US efforts. The company first announced plans enter the U.S. market at the Consumer Electronics Show in January 2016. It followed nine moths later with an October 2016 press conference launching phones, TVs, and connected bicycles.
The company expanded too swiftly around the world and ran into cash problems Early this year the firm announced plans to scaled back.
“While we’ve made progress in growing our distribution channels, the challenges with raising new capital have made it difficult in the past few months to support all of our business’ priorities,” said the company in a statement.
Dur to the cash follow issues, LeEco cannot support its U.S. employees and end employment of 70%, or about 325 people.
“Our goal is to continue to gain momentum. In the past few months, we have gained a large foothold in Chinese-speaking households in the U.S. by offering tailor-made products and content for this community. We believe this provides us an opportunity to build on our strengths and grow from there.”
LeEco did not discloed the products it will continue to offer U.S. consumers, when the U.S.-based employees jobs will come to an end. This week, the company’s founder stepped down from his CEO role at Leshi – one of the firms major business unit.
