LeEco plans to cut 10 per­cent of work­force

China Daily (USA) - - BUSINESS - By FANFEIFEI fanfeifei@chi­nadaily.com.cn

Chi­nese in­ter­net com­pany LeEco is cut­ting jobs to pull in its horns and re­lieve its cash flow crunch.

Cash-strapped LeEco, which has a to­tal pay­roll of 8,000, is plan­ning to cut its work­force by 10 per­cent, ac­cord­ing to the Guangzhoubased TimeWeekly.

LeEco didn’t deny the re­port and said that it needed to op­ti­mize its operations and re­or­ga­nize the com­pany.

An em­ployee at the com­pany’s sports sub­sidiary Le Sports, who de­clined to give his name, told China Daily there are more than 1,000 em­ploy­ees in Le Sports, and 10 per­cent of the jobs will be cut.

Shen Meng, direc­tor of Chan­son & Co, a bou­tique in­vest­ment bank in China, said: “This lay­off and shrink­age in operations by LeEco are a re­me­dial mea­sure to its pre­vi­ous over­ex­pan­sion and cash burn­ing.”

Shen added what LeEco needs to con­sider is to cut off its non-core busi­nesses and fo­cus on key ar­eas.

“Elec­tric ve­hi­cles, real es­tate and e-com­merce are far from LeEco’s ma­jor busi­nesses, which in­clude con­sumer elec­tron­ics and entertainment tech­nol­ogy,” said Shen.

LeEco founder and CEO Jia Yuet­ing said it was start­ing to see signs of “big com­pany dis­ease”, such as low in­di­vid­ual per­for­mance and or­ga­ni­za­tional re­dun­dan­cies.

LeEco an­nounced a strate­gic part­ner­ship with US tele­coms gi­ant AT&T Inc on Tues­day on con­tent and ter­mi­nal co­op­er­a­tion.

LeEco said AT&T’s DIRECTV would be­come its con­tent part­ner, pro­vid­ing con­tent from more than 100 chan­nels.

AT&T said it will work with

LeEco toof­fer in­te­grat­e­duser ex­pe­ri­ence modes, which will even­tu­ally be avail­able on LeEco’s ter­mi­nals sold in the US.

“We con­tinue to bring to life our vi­sion of a con­nected ecosys­temthat puts con­tent at the cen­ter of the ex­pe­ri­ence. We are mak­ing our pre­mium prod­ucts and the best con­tent even more

ac­ces­si­ble,” said Danny Bow­man, chief rev­enue of­fi­cer for LeEco North Amer­ica.

Brad Bent­ley, executive vi­cepres­i­dent at AT&T Entertainment, said: “We’re ex­cited to of­fer LeEco cus­tomers a new way to en­joy the best in video con­tent.”

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