Report Says LeEco US Violated The WARN Act, Company Responds

LeEco is a China-based smartphone manufacturer who wanted to do too much too fast, and is now paying the consequences it seems. This company was quite successful in China under the Letv name, before they changed it to LeEco. Letv was founded back in 2004 and they were a video streaming company for quite some time, and were quite good at it. Letv was actually the first Chinese video streaming company to go public. Well, the company decided to manufacture smartphones back in 2015, they actually released first three handset in April 2015, and have changed their name to LeEco in January 2016.

That being said, LeEco decided to expand outside of China rather fast, and that didn’t exactly pan out for them. They started selling their products in India, and then moved on to the United States in November 2016. LeEco hosted their first flash sale in the US, though they didn’t realize that flash sales are not exactly the best idea when it comes to the United States. Even though LeEco managed to sell out their TVs rather quickly in the US, the whole venture didn’t exactly pan out for the company. LeEco’s CEO issued a corporate letter a while back, claiming that the company over-expanded, and the US was not the only problem, LeEco actually fired 85% of their staff in India rather recently. On top of all that, a report surfaced recently claiming that LeEco wants to sell the property they bought from Yahoo last year, and even though LeEco officially said that they have nothing to announce at this time, and that they’re working hard on improving things, in a nutshell. The company denied that they’re leaving India, but will they leave the US? Well, we’ve received some new info from an anonymous source, and based on the provided info LeEco is not doing that well at all, read on.

Ex-Samsung CMO, Todd Pendleton, allegedly quit LeEco in November, and the Google Patent lawyer who LeEco hired quit rather recently as well. LeEco laid off over 250 people in the US since November, and according to the source, the company will continue doing so. Now, some of you might know that a company in the US needs to issue a ‘WARN' notice if they plan to lay off a substantial amount of people, well, it seems like LeEco violated that rule, as you can see here. We’ve decided to reach out to the company after we’ve received this report, and LeEco simply said the following: “As a company, we follow regulatory processes and laws”, while they’ve also mentioned that they do not comment on the individual status of employment. Now, if you take a look at the gallery down below, you’ll be able to get some additional info, on top of what was already said in this article. So, will LeEco be leaving the US in the near future? Well, the company spent a lot of money and time trying to succeed in the US, and it’s not that likely we’ll see them leaving the States anytime soon, they even announced US retail expansion for smartphones and TVs quite recently. So, all in all, it seems like LeEco is here to stay, but who knows what the future brings, stay tuned.

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About the Author

Kristijan Lucic

Assistant Editor
Kristijan has been writing for Android Headlines since 2014 and is an editor for the site. He has worked as a writer for several outlets before joining Android Headlines, and has a background in writing about Android and technology in general. He is a smartphone enthusiast that specializes in Android applications, and that platform in general. Contact him at Kristijan. [email protected]