Struggling LeEco sells Silicon Valley property less than a year after purchasing it
Posted by ishubhamsingh
LeEco is a company with big goals. It is mostly known for its smartphones that offer a great price-performance ratio as well as for developing luxury electric vehicles with Faraday Future. Last year, the company officially entered the US market and purchased a 49-acre property in Silicon Valley from Yahoo. Jia Yueting, the company’s founder and CEO, said that the property will be an “EcoCity that houses 12,000 employees.”
It now looks like LeEco is changing its plans. According to a report from Reuters, the Chinese company has now sold the property in Silicon Valley, less than one year after buying it. The new owner is Genzon Group, which purchased the property for $260 million.
We already knew that LeEco is experiencing a cash crunch, as its CEO admitted this in a letter to staff back in November. Apparently, the company is struggling to pay its debts to suppliers and other business partners, which is one of the reasons why it decided to sell its property in the US.
Reuters also reports that LeEco has significantly reduced the number of employees in the US. The company has at least halved the workforce in Silicon Valley alone. Looks like business isn’t really doing as good as originally planned.
LeEco does have quite a few interesting and affordable products on sale in the US, which can be purchased from the company’s online store, on Amazon, and from a few other retailers. But based on the fact that it had to sell its property in the US and is experiencing financial difficulties, sales numbers probably aren’t very high.
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