LeEco lays off 60 Hong Kong staff in wake of reports of cash crunch

Chinese internet company LeEco has laid off 60 employees in its Hong Kong office as the company looks to restructure and optimise its operations following reports of an impending cash crunch last month.

The news of the retrenchment round comes just weeks after the company said it planned to cut about 10 per cent of its staff at its sports video-streaming subsidiary LeSports. Mainland media reports suggested that the retrenchment number was closer to 20 per cent, or 200 of LeSports approximately 1,000-strong headcount.

LeEco said the retrenchment of staff in Hong Kong was a one-time layoff. Retrenched employees are entitled to receive compensation, according to Hong Kong’s employment policies.

LeEco’s existing businesses and membership services will not be affected by the round of layoffs, the company said.

A spokesperson for LeEco also cited LeEco-Asia Pacific chief executive Anthony Gao Jun, who said in earlier interviews that the company is seeking to better integrate its Asia-Pacific, Hong Kong and LeSports operations to increase operational efficiency.

In November, LeEco chief executive Jia Yueting said in an internal letter to employees that the company was rapidly running out of money as it had expanded faster than it could raise external funding.