LeEco is not in a pretty shape right now. The news is that the company is in massive debts following a company-wide memo where the CEO, Jia Yueting, mentioned the company’s growth expansion problem and also complained about individual work performances and redundancies.
If you have ever had to work for an organization which is facing financial difficulties or trying to restructure itself, once you hear them mention that certain positions are redundant, expect a layoff in the nearest future. They might deny it when you ask them or dismiss it as you being paranoid, but it is their way of quelling a possible panic-infused environment.
It appears a layoff is coming or has already even occurred at LeEco as an image of employees queuing up at the Human Resources center has been posted online. The rumor is that about 1400 employees have been asked to leave as a result of organizational restructuring.
The layoff will not only affect the company’s mobile sector but also its media arm. Sources say that the sports editor for LeEco Ao Ming has handed in his resignation.
News of the layoffs has affected the company’s stock, dropping by a record 9.9% to 35.01 yuan per share and picking up later to close at 35.80 Yuan per share. This morning, LeEco’s stock was suspended temporarily and the reason given by the CEO is that the suspension is due to to the company undergoing a new round of financing.
While LeEco isn’t be the first company to lay off its staff due to wrong decisions made by the higher-ups, it certainly won’t be the last. We want to believe the restructuring is one of the reasons why we have not heard anything new about their Helio X27 sporting dual-camera phone.