Layoffs Archives - Gizmochina

Sony to Lay Off 900 Employees from its PlayStation Division

Anubhav — Tue, 27 Feb 2024 15:49:27 +0000

Sony‘s PlayStation division is facing a challenging period, as the company announced a significant reduction of its workforce by about 8 percent, translating to around 900 employees. This move affects various globally renowned PlayStation studios, such as Insomniac Games, Naughty Dog, Guerrilla Games, and Firesprite, marking a major shift in Sony’s operational strategy.

The layoff will affect multiple PlayStation studios, such as Insomniac Games.

The decision comes at a time when the gaming and tech industries are navigating through turbulent waters, with numerous companies undergoing similar downsizing efforts. Sony’s initiative reflects a broader trend of restructuring within the sector, aimed at maintaining competitiveness and ensuring long-term sustainability.

PlayStation chief Jim Ryan expressed the difficulty of the decision, emphasizing the global impact on the company’s employees, including those in pivotal development studios. The closure of its London Studio, known for PlayStation VR games, alongside cutbacks in other key areas, showcases a strategic realignment focusing on future growth areas such as PC and mobile gaming platforms.

The restructuring follows a disappointing performance in PS5 sales targets, which saw Sony’s stock price take a significant hit. Despite these challenges, the company is looking to expand its horizons by investing in social, online experiences and diversifying its game availability beyond traditional consoles.

This move is not isolated within the industry. Recent layoffs at other major firms like Microsoft, Unity, and Discord highlight a period of adjustment and recalibration for many in the gaming world. Sony’s efforts to streamline its operations and focus on core strengths aim to adapt to the changing dynamics of game development and distribution.

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Mozilla Lays Off 60 Employees – After Naming a New CEO

Anubhav — Wed, 14 Feb 2024 02:45:21 +0000

Mozilla, a name many of us know for the Firefox browser, is changing things up. They’re saying goodbye to 60 people on their team, which is about 5% of their staff. This change mostly affects those who work on making their products. The company is looking to put more energy and resources into certain projects, like making Firefox work better on mobile phones and exploring the world of artificial intelligence (AI).

This is one of the many tech layoffs that have affected the global jobs scenario

In a world where tech companies often have to adjust their sails to keep moving forward, Mozilla’s decision to let some of its team go reflects a bigger plan. They’re choosing to invest more in the areas they believe will help them grow and make a bigger impact in the tech scene.

AI is getting a lot of attention these days, and Mozilla doesn’t want to be left behind. They see a big opportunity to make Firefox smarter with AI, especially after buying a company called Fakespot. This move shows Mozilla is serious about making the internet a better place, where it’s easier to find what you’re looking for without running into fake stuff.

Mozilla is also tidying up its range of projects. While some, like their VPN and a privacy tool, are getting less attention, others are being shut down completely. This lets Mozilla focus more on Firefox Mobile and AI—areas they’re really excited about.

The company is also welcoming a new CEO, Laura Chambers, who used to work at Airbnb, PayPal, and eBay. With her at the helm, Mozilla hopes to bring out products that not only do well in the market but also stick to their mission of making the internet a better place for everyone.

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More Layoffs as Snap Inc. Lets Go of 500 Employees

Anubhav — Mon, 05 Feb 2024 15:37:15 +0000

Snap Inc., the company behind Snapchat, is letting go of 10% of its workforce, about 500 people. This move is part of a plan to make the company work better together and more efficiently. Snap’s decision reflects a bigger trend in the tech world, where many companies are trimming down to stay agile and competitive. Some other recent layoffs include Discord’s layoff of 17% of its employees and Microsoft’s layoff of almost 1900 employees.

The tech sector has seen nearly 24,000 job cuts in the month of January alone

The layoffs are meant to help Snap reduce layers within the company and improve face-to-face work among teams. This is a strategic step to keep the company strong and focused, especially during a time when the tech industry is facing a lot of changes. Other tech firms, including big names like Okta and Zoom, have also been cutting jobs recently. In fact, the tech sector saw nearly 24,000 job cuts in January alone.

Snap has been through this before, with several rounds of job cuts starting in 2022. This is part of an ongoing effort to align the company’s structure with its goals for growth and innovation. These latest layoffs are expected to cost between $55 million to $75 million.

The company is also under the spotlight for the impact of social media on young people, with CEO Evan Spiegel recently speaking to the Senate Judiciary Committee about this issue. Despite these challenges, Snap has managed to increase its revenue from digital ads recently and has started buying back $500 million in shares.

Even with these efforts, Snap’s stock price is still below its initial public offering price and far from its peak in 2021. This shows the company is working through some tough times, trying to find the best path forward in a fast-changing tech landscape.

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Microsoft is Now a $3 Trillion Company, Second only to Apple

Anubhav — Fri, 26 Jan 2024 02:36:16 +0000

Today, Microsoft had some mixed news to share. On the bright side, they’ve reached a massive milestone, hitting a $3 trillion market value. This is a huge deal, making them the second company to do this after Apple. Their stock price climbed to $404.87 per share, showing strong confidence from investors, thanks to their big moves in AI and new tech.

The company’s huge layoff this morning definitely sent some ripples

But, there’s a challenging side too. As covered earlier today, Microsoft also announced they’re cutting 1,900 jobs in their gaming division. This follows their huge buyout of another big gaming company, Activision Blizzard, for $69 billion. Phil Spencer, the head of Xbox, explained this step as a part of their strategy for continued growth and maintaining a balanced budget.

This isn’t new for Microsoft. Last year, they let go of 10,000 workers across various departments, even while their profits were up. Despite these tough decisions, the company’s financial health is strong. They reported a 13% increase in revenue compared to last year, a significant boost.

As Microsoft gears up to announce their full earnings for 2023, they present a picture of a giant at a crossroads. Achieving such a high market value is a big win, but it comes with the hard reality of job cuts. These decisions reflect the complex balance between expanding their business and managing costs effectively.

In the tech world, success and challenge often go hand in hand. Microsoft’s journey is a clear example of this. They’re growing and making more money, but they also have to make some tough calls about their workforce. It’s a delicate balance for such a huge company, trying to keep up with the fast-paced tech market while making sure they’re set up right for the future.

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Twitch Cuts Over 500 Jobs Amid Financial Struggles and Industry Competition

Anubhav — Fri, 12 Jan 2024 14:33:15 +0000

Twitch, just like other tech companies in the world right now, is grappling with the harsh realities of the tech industry as it undergoes significant staff reductions. Dan Clancy, the CEO of Twitch, openly discussed the company’s current challenges and future direction in response to the recent announcement of cutting over 500 staff members. This move follows a substantial layoff of about 400 employees last year.

The company CEO stated that Twitch is still not profitable – even after layoffs

In 2023, despite aggressive cost-cutting measures, Twitch found itself significantly larger than necessary for its current business scale. This over-sizing, according to Clancy, was based on overly optimistic future projections rather than the present reality. Twitch’s payouts to streamers exceeded $1 billion last year, yet the company remains unprofitable, heavily reliant on the support of its parent company, Amazon.

The tech industry, particularly the live streaming segment, is fiercely competitive. Rival platforms like Kick have been aggressively courting top streamers with lucrative deals, intensifying the pressure on Twitch. Notably, popular streamer xQC, also known as Félix Lengyel, signed a deal with Kick reportedly worth around $100 million. Twitch has steered away from such high-cost contracts, with Clancy emphasizing the unsustainability of this approach in terms of revenue versus expenditure.

Despite the layoffs and the company’s unprofitability, Clancy reassured that Amazon remains committed to Twitch. He dispelled any notions of Amazon axing Twitch, citing heavy investment and bullishness from the parent company. However, Twitch’s struggle is not unique in the current tech landscape. Other major players like Discord and Unity have also announced significant layoffs, reflecting a broader industry trend of recalibration in response to economic pressures and changing market dynamics.

As Twitch seeks to downsize its expensive San Francisco headquarters, it’s clear that the platform, like many in the tech world, is navigating a period of significant transition. The challenge for Twitch will be to find a sustainable path forward, balancing cost efficiencies with its role as a major player in the live streaming arena.

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Discord Announces a 17% Reduction in its Workforce

Anubhav — Fri, 12 Jan 2024 03:04:15 +0000

Discord recently announced a significant reduction in its workforce, affecting 17% of its employees. This decision, communicated by CEO Jason Citron, reflects a broader trend in the tech industry, where rapid expansion during the pandemic years is giving way to a more cautious approach.

A total of 170 employees will be laid off across various departments

The layoffs at Discord impact 170 individuals across various departments, marking the company’s largest workforce reduction to date. This follows a smaller round of layoffs in August last year. Citron’s memo to employees, which outlines the decision, reveals a company grappling with the challenges of over-expansion. Since 2020, Discord’s workforce has grown fivefold, leading to inefficiencies and an unsustainable operational model.

Discord’s financial situation is complex. Despite having raised about $1 billion in funding and possessing over $700 million in cash reserves, the company is still striving for profitability. The surge in user growth during the pandemic has plateaued, and Discord is now refocusing its strategy to become leaner and more agile.

This situation mirrors the larger tech industry, which is also experiencing a wave of layoffs, including recent cuts at giants like Google and Amazon. These developments point to a recalibration in the tech sector, which had previously seen unchecked growth and expansion.

For the affected employees, Discord is offering considerable support, including five months of salary, continuation of benefits, outplacement services, and equity vesting. Citron’s memo emphasizes the importance of supporting those leaving and acknowledges the contributions they have made to the company.

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Spotify Announces Layoffs for Almost 1500 Employees across the Company

Anubhav — Mon, 04 Dec 2023 14:22:52 +0000

Spotify, a leading music streaming platform, recently announced a significant workforce reduction, affecting 17% of its employees. This decision by CEO Daniel Ek, coming as a surprise just before the holiday season, aims to address the company’s financial challenges and align its operational costs with its financial goals.

Spotify surged in 2020 and 2021 fueled by lower capital costs

Despite a strong performance and a positive earnings report, Ek explained that the company faced a stark choice between making smaller reductions over the next two years or taking decisive action now. Opting for the latter, Ek stressed the need for a substantial adjustment to right-size the company’s costs to meet its objectives, acknowledging the pain this decision would cause to the team.

The backdrop to this decision is Spotify’s rapid expansion in 2020 and 2021, fueled by lower capital costs. These investments paid off, contributing to the company’s growth. However, even after previous layoffs in early 2023 and May, cutting about 8% of its workforce, Ek noted that the company’s cost structure remained too large for its future needs.

Approximately 1,500 employees will be impacted by this latest round of layoffs. To ease the transition, Spotify plans to offer an average of five months of severance pay, healthcare coverage during this period, and immigration and career support.

Ek’s announcement underlines the necessity for Spotify to adopt a leaner operational model in its next phase. This follows the introduction of a revamped royalty model aimed at increasing payouts to working artists while reducing fraudulent streams.

Spotify has consistently grown its user base, now boasting 574 million monthly active users, a 26% increase year-over-year. Despite this growth, profitability has been elusive, with recent quarters showing rare profits. Ek promises more details on the implications of these changes in the coming weeks.

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Nokia is Laying off 14,000 Employees due to Challenging Environments

Anubhav — Fri, 20 Oct 2023 13:44:39 +0000

In a pretty unexpected move, Nokia plans to eliminate up to 14,000 jobs—indicating what could be a larger trend of slowing momentum in the tech industry. The announcement from the Finnish telecom leader follows other significant layoffs from major tech companies, including X (formerly Twitter), Amazon, Google, Microsoft, and Meta, who’ve cumulatively cut over 50,000 positions this year.

Nokia wants to slash staffing costs by a lot of margins

Nokia’s decision is notably massive, designed to cut its workforce to a range between 72,000 and 77,000 employees. The aim? To slash staffing costs by 10% to 15%, promising savings of $421.4 million in 2024 alone. Nokia CEO, Pekka Lundmark, summed up the painful reality, stating, “The most difficult business decisions to make are the ones that impact our people.”

Why is this happening now? For Nokia, it’s a combination of missed financial targets and market factors. A 15% decline in third-quarter sales and a 19% dip in mobile network sales suggest a more critical look at the 5G market. Nokia’s Swedish competitor, Ericsson, also shares a grim outlook, citing a “challenging environment and macroeconomic uncertainty.”

But Nokia’s woes aren’t just financial. They’re also entangled in a complicated patent dispute with Oppo, OnePlus, and vivo, which could further strain their resources and market availability. Once a mobile phone titan, Nokia’s struggle to reinvent itself in the smartphone era has been something to witness.

Is Nokia’s dramatic decision just a case of corporate restructuring, or is it a symptom of a larger industry ailment? The sheer number and scale of recent layoffs in the tech world could point to a broader slowdown.

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Meta Faces Obstacles with Metaverse, Plans to Lay Off Employees from Chip Division

Anubhav — Thu, 05 Oct 2023 00:58:01 +0000

Meta, the birthplace of Metaverse, is hitting some bumps in the road to its vision. The company plans to lay off employees from its Reality Labs division, which focuses on creating custom silicon for AR/VR devices, according to inside sources. This news comes amid concerns about Meta’s ability to develop competitive custom silicon and places question marks over its collaboration with external providers like Qualcomm.

The custom silicon unit of Meta has around 600 employees

Employees got wind of the layoffs via Meta’s internal discussion forum, Workplace, which indicated that they would be notified of their status by Wednesday morning. While a Meta spokesperson stayed mum on the issue, the move could potentially hinder CEO Mark Zuckerberg’s goal to redefine how we interact with technology through augmented and virtual reality. The custom silicon unit, known as Facebook Agile Silicon Team (FAST), employs roughly 600 people and aims to make Meta’s devices stand out in the growing AR/VR market.

The layoff news may be a sign of larger issues at Meta Platforms. The company has already cut around 21,000 jobs since last November, primarily to appease investors worried about slowed revenue growth and high operating costs. This layoff could be another cost-cutting move, especially as Reality Labs has been bleeding money. It also poses questions about Meta’s commitment to internal innovation, particularly as the company has turned to external chip maker Qualcomm for its currently marketed devices.

Despite these setbacks, Meta is not taking its foot off the pedal in its drive toward a metaverse. The company is still working on new products like less bulky AR glasses and smart watches, expected to be finalized next year, albeit not for mass consumer release initially.

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Xiaomi India undergoes reshuffling, major layoffs bring employees down to 1,000

Sean — Thu, 29 Jun 2023 11:17:05 +0000

Xiaomi has apparently made a major reshuffling in its operations in India. The company that has employed over 1,400 people in the region has made mass layoffs in the region. So here are all the details.

Xiaomi India brings employees down to 1,000

Following a decline in the market share and scrutiny by the local government, the Chinese tech giant has decided to undergo a major downsizing effort in employee count. So now, the headcount will fall from somewhere between 1,400 and 1,500 down to just 1,000. The news arrives from an employee that spoke to the Economic Times recently. Reportedly, the brand is let go of around 30 people in just the past week.

In other words, it is likely that more employees would follow soon in a similar fashion. Xiaomi has been cutting employees since the start of this year, so this news arrives as no surprise. ET reached out for a comment and a Xiaomi India spokesperson responded by saying “As with any company, we take headcount decisions based on the market’s state and business projections.” He further added that the company will also hire on an ‘as and when needed basis.’

The report further adds that a senior executive from the brand revealed that the leadership team was told to designate a part of their teams for a performance review, which would clear them for termination based on their individual performance. This is all the information we have regarding this matter, so stick around for more updates.

SoundCloud to Lay Off 8 Percent of its Workforce

Anubhav — Wed, 24 May 2023 05:06:08 +0000

Tech companies may lay off employees for various reasons, including business restructuring, cost-cutting measures, automation and technological advancements, economic downturns, strategic shifts, and performance issues. These layoffs are often driven by the need to adapt to changing market conditions, improve profitability, optimize operations, or align resources with new priorities. While disruptive for affected employees, they are part of the dynamic nature of the tech industry and may not necessarily indicate its overall health. However, in light of the ongoing recession in some countries, we are getting to see a lot of layoffs, especially at the hands of big tech organizations, raising questions about the ‘health’ of the industry. Soundcloud, the popular music provider, is the latest company to announce another layoff.

The company laid off 20 percent of its workforce in 2022

Just last year, the company faced the harsh reality of a challenging economic climate, resulting in a 20 percent reduction in its workforce. Following the footsteps of tech giants such as Google, Meta (formerly Facebook), and Amazon, SoundCloud justified these layoffs as a strategic move aimed at restructuring and cutting costs. Now, the company is poised to let go of an additional 8 percent of its employees, characterizing this decision as both daunting and crucial to ensure SoundCloud’s financial well-being and achieve profitability within the current year.

In 2022, the company depicted these staff cuts as a means of charting a course toward sustainable profitability. This latest “headcount reduction” appears to be a progression in that strategy, with insider sources revealing SoundCloud’s ambitious target of achieving profitability by the fourth quarter. Furthermore, reports indicate that SoundCloud’s leadership is actively engaging in discussions with potential new investors, seeking additional support for their future goals.

Although SoundCloud’s decision to downsize its workforce falls in line with a general trend observed across numerous tech brands, it is worth noting that the company has been gradually reducing staff for some time. In 2017, SoundCloud implemented a drastic workforce reduction, resulting in a staggering 40 percent decrease in its employee count in one go.

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Amazon Announces Another Round of Layoffs, This Time from the Ad Department

Anubhav — Wed, 19 Apr 2023 06:08:13 +0000

Amazon, one of the world’s biggest companies, has confirmed that it is laying off employees in its advertising department as part of the company’s efforts to implement cost-cutting goals set by CEO Andy Jassy. While the scale of the layoffs is unclear, they are aimed at reallocating resources to maximize benefits for customers and ensure the long-term health of the business.

Amazon is also cutting jobs in its cloud computing, Twitch and HR Departments

The move comes as Amazon is undergoing the largest layoffs in its 29-year history. This was implemented after Jassy announced that Amazon will lay off 9,000 additional jobs on top of the 18,000 it cut in November last year and January this year. In addition to the recent layoffs in retail, equipment, recruiting, and human resources, Amazon is also cutting jobs in its advertising, cloud computing, Twitch streaming, and human resources departments.

These layoffs are part of a wider trend in the tech industry, as many companies are reassessing their workforce needs in the wake of the COVID-19 pandemic. Companies that have been heavily reliant on office-based workforces are rethinking their strategies, with many planning to continue with remote work arrangements even after the pandemic subsides. This shift is leading to layoffs in certain areas while creating new opportunities in others.

Despite the layoffs, the tech industry is still expected to be a major employer in the coming years. According to the U.S. Bureau of Labor Statistics, employment in computer and information technology occupations is projected to grow 11% from 2019 to 2029, much faster than the average for all occupations. This growth is expected to be driven by increasing demand for cloud computing, big data, and cybersecurity.

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More than 100 Employees Laid off from Amazon’s Gaming Divisions

Anubhav — Wed, 05 Apr 2023 03:46:03 +0000

Major tech giants in the industry are going through layoffs right now, with Amazon, Google and Microsoft being some of them. The reason for these layoffs is unclear but may be related to ongoing economic challenges caused by the pandemic. Companies are under increasing pressure to cut costs and adapt to new economic realities. It could also be due to changes in the industry as more people are working remotely, and companies are looking to optimize their operations for the new reality. Whatever the reason, layoffs undoubtedly have a significant impact on the affected employees and their families. Amazon is continuing with their layoffs, with the company firing more than 100 employees across its gaming divisions.

Amazon has announced layoffs of more than 100 employees involved in game production, including those working in the Prime Gaming, Game Growth, and Amazon Games’ San Diego studio. The company has cited a shift in strategic focus as the reason for the cuts, but hasn’t offered further details. Gaming VP Christoph Hartmann sent an internal memo announcing the layoffs and stated that teams in Irvine and Montreal will continue to expand. Affected employees will receive severance pay, health benefits, and paid time to search for new jobs.

Amazon’s game development efforts have been less than successful. The company is currently only offering the online RPG New World, while its free-to-play shooter, Crucible, was available for only a short time before being shut down. There has also been turmoil at the San Diego location, with studio head John Smedley leaving earlier this year. The gaming layoffs come on the heels of Amazon’s plans to cut 9,000 positions company-wide, as it seeks to reduce costs amid the pandemic recovery and a turbulent global economy.

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Microsoft Hosted A Private Concert For Its Execs In Davos, Before Announcing 10000 Job Cuts: Report

Anubhav — Sat, 21 Jan 2023 08:45:18 +0000

With layoffs becoming somewhat common across tech companies these days, Microsoft decided to take it a step further. The company is under fire from the general media and the public for hosting a private concert for its executive employees exactly one day before Microsoft announced its plan to lay off 10,000 employees. Gordon Matthew Thomas Sumner, popularly known as Sting, played at the concert.

Microsoft Logo

Microsoft has announced that there will be a reduction in the workforce through Q3 of 2023, affecting approximately 5% of the company’s employees. They attributed the layoff to post-pandemic regulation of expenses throughout the world. This news is quite unfortunate, but the timing is made more difficult by the fact that some of the company’s leadership team was in Switzerland the night before the announcement. The concert had a small gathering of around 50 employees, and it was hosted at the Davos ski resort on Tuesday evening. The whole ordeal was also made worse by the fact that there were earlier statements made by a Microsoft spokesperson that previously denied any rumours of layoffs. This caused confusion and concern among the employees.

In recent months, several major technology companies, such as Amazon have made strategic adjustments to their workforce in response to the current economic climate. Factors such as economic slowdown, high inflation, and rising interest rates have influenced these decisions to reduce their employee count. However, the timing of Microsoft’s concert definitely left a sour taste lingering in the air, that’s for sure.

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Meizu again lays off employees; closes down several stores in China

Jeet — Mon, 29 Jul 2019 04:55:38 +0000

If the reports coming from China are to be believed, then the smartphone maker Meizu is in deep waters. As per the report, which cites the company’s employees, Meizu carried out a new round of layoffs and the heavily hit department was marketing.

The report, citing Meizu insiders, says that the company has laid off more than 30 percent of its workforce this year so far and is now left with just around a thousand employees. Meizu has also confirmed that its well-known systems engineer Hong Hansheng has also left the Chinese company.

On the other hand, Meizu, which was touting itself to be a competitor of Huawei and was focusing on expanding its offline presence, seems to be backing down. The company, which had over 2,700 offline stores at its peak in 2016, is now left with just 5 or 6 such stores in one province.

As we recently reported, Li Nan, co-founder and Vice President of Meizu, resigned from the company earlier this month. In the memo shared publicly, he said that he had started taking fewer responsibilities following the launch of the Meizu 16. He did acknowledge that the company is facing challenges but believes things will get better as long as they do not stop improving.

Editor’s Pick: New OPPO phone with ‘Waterfall Screen’ with extremely curved edges shown off in images

While Li Nan hasn’t specified what his next step would be, he has revealed that he is still focused on the consumer market and developing new brands. While departing from Meizu, he thanked his co-workers, investors, and shareholders.

The Blue Charm brand was being headed by Li Nan while Bai Yongxiang became the CEO of the flagship Meizu brand. Huang Zhang was leading the product design efforts. Hong Hansheng, on the other hand, was leading the Flyme OS development. While all was good, the company couldn’t compete with the top OEMs in terms of sales.

Meizu was co-founded by Li Nan along with Bai Yongxiang who is the current CEO, and Huang Zhang (Jack Wong). Initially, the company was started as an MP3 player manufacturer before switching to phones in 2008. While the company’s portfolio is now diverse, smartphones remain Meizu’s major source of revenue. Last year, Meizu also celebrated its 15th anniversary.

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Up Next: Mysterious Xiaomi 5G smartphone spotted at TENAA; Could it be the upcoming Mi MIX 4/3s?

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Gionee Announces Massive Layoffs, Founder In Gambling Debts

Habeeb Onawole — Thu, 12 Apr 2018 10:44:44 +0000

Gionee has been under the radar since the beginning of the year. It hasn’t announced any new phone and it didn’t attend MWC 2018. Latest reports say the Chinese manufacturer is facing some troubles.

Last November, Gionee announced 8 new phones at an event in Shenzhen.

The manufacturing arm of the company is said to have laid off some of its staff and there are reports the headquarters will be dismissing up to 50% of its workers. Gionee is said to have a workforce of about 8,000.

Some employees who spoke with Netease, a Chinese media, said the company went on a 2-month break but were not paid their full benefits. They also said the layoff was presented to them as a choice between staying and being on a sort of compulsory leave or leaving and getting your benefits later. Whichever one you choose, you won’t be getting any payment for a while.

The bottom line is that the company is finding it hard to pay its workers. It is also said to be unable to pay suppliers and advert partners. Earlier this year, A Chinese court is said to have frozen 41.4% of the shares of the company’s founder, Liu Rong, for a period of two years due to unpaid gambling debts.

Despite the financial woes, Gionee is planning an expansion in India. It is also said to be working on a new smartphone with an in-display fingerprint scanner.

(Source, Via)

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Sign of a Major Layoff as Image of LeEco Employees Queuing Up Surfaces Online

Habeeb Onawole — Wed, 07 Dec 2016 13:51:00 +0000

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.

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