LeEco is reportedly planning massive layoffs to its U.S. workforce

LeEco Vizio announcement
LeEco
It looks like LeEco’s big bet on expansion into the U.S. may not have paid off in quite the manner the company expected. The Chinese firm is reportedly prepping for a massive round of layoffs on Tuesday, May 23, according to a report from CNBC.

The report notes that only 60 percent of the company’s U.S. workforce will be left after the round of cuts. According to CNBC’s source, its current U.S. workforce sits in at over 500 employees. The report also cites an email calling employees to a “Town Hall” meeting that is supposed to occur at its locations in San Diego, San Jose, and Santa Monica, all in California, and that all employees are being told to attend unless they have pre-approved time off.

So what will LeEco do after the layoffs? The company will reportedly focus on launching products aimed at Chinese-American customers, who might want to continue watching its Chinese content library while they’re in the U.S.

It’s unclear what this means, if anything, for LeEco’s investments into Faraday Future, though reports note that its investment will likely continue.

LeEco was first founded in China as a streaming service, but it soon hoped to start expanding into the U.S. by offering hardware that links customers to its content. When it first announced its big move into the U.S., it offered a range of smartphones and smart TVs, all of which offered flagship-level specifications at a reasonable price. The goal here was to make money back through its content — a plan which apparently turned out not to work.

LeEco is going through a turbulent time otherwise, too — Jia Yueting stepped down as CEO of LeEco’s publicly traded arm, Leshi, though he will stay on as chairman.

None of the news is all that surprising. Jia admitted in an interview with QQ last year that the company had expanded too hastily and was suffering through a cash crunch.

Features

Where Toronto sees smart sidewalks, residents see ‘1984.’ So what now?

Google-parent Alphabet is partnering with Toronto to develop a new, smart neighborhood, but some are concerned about privacy and the company’s motives. Could residents derail the project?
Smart Home

Amazon shows off compact cashier-free store that could show up at airports

Amazon is testing its smallest Amazon Go store to date as it considers taking the grab-and-go technology to new venues such as airports and train stations. The compact store is a quarter the size of its current locations.
Mobile

5G’s arrival is transforming tech. Here’s everything you need to know to keep up

It has been years in the making, but 5G is finally becoming a reality. While 5G coverage is still extremely limited, expect to see it expand in 2019. Not sure what 5G even is? Here's everything you need to know.
Business

Chinese court upholds Qualcomm's complaint that Apple infringed on two patents

Apple is following the FTC's lead and has sued Qualcomm for a massive $1 billion in the U.S., $145 million in China, and also in the U.K., claiming the company charged onerous royalties for its patented tech.
Home Theater

Cutting the cord? Let us help you find the best service for live TV streaming

There's a long list of live TV streaming services available to help you cut the cord and replace your traditional TV subscription. Each is different in important ways, and this guide will help you find the best one for you.
Social Media

Ride the rails and share your stories with Amtrak’s new social media residency

Amtrak is looking for travel fans with a knack for telling stories on social media. The new Amtrak social media residency program wants amateur travelers to share photos, video, and written content from aboard long-distance trips.
Computing

A second Wells Fargo glitch results in the foreclosure of more homes

A computer error has struck Wells Fargo once again, resulting in hundreds more homes being mistakenly foreclosed after a first glitch was reported in August. To compensate one customer, the bank sent a check for $25,000.
Mobile

Samsung partners with AT&T to create a multi-band 5G smartphone for late 2019

Ready to experience a radical transformation in mobile communication? AT&T is launching mobile 5G in cities across the country over the next few months. Here's everything you need to know about the AT&T 5G rollout.
Mobile

Qualcomm's 3D Sonic fingerprint sensor could make your next phone more secure

Almost exactly a year after the launch of the Snapdragon 845, Qualcomm took the wraps off of its next-generation mobile platform, the new Snapdragon 855. The new chip puts an emphasis on A.I. performance.
Movies & TV

Movies Anywhere service adds Comcast films to its library and devices

Movies Anywhere lets you watch movies purchased from different services all in one place, and it just got even better with the addition of Comcast, which joins Microsoft, Amazon, iTunes, Google Play, Vudu, and FandangoNow.
Web

Can Microsoft’s Airband Initiative close broadband gap for 25M Americans?

A new report from the Federal Communications Commission (FCC) says that 25 million Americans do not have access to broadband internet. Of these, more than 19 million are living in rural communities. Can Microsoft help out?
Business

Amazon scouted airport locations for its cashier-free Amazon Go stores

Representatives of Amazon Go checkout-free retail stores connected with officials at Los Angeles and San Jose airports in June to discuss the possibility of cashier-free grab-and-go locations in busy terminals.
Business

‘Ralph Breaks the Internet’ wins one of the worst box-office weekends of 2018

Wreck-It Ralph sequel Ralph Breaks the Internet stayed on top of the weekend box office for the third week, winning what was one of the worst weekends for ticket sales in the US so far this year.
Computing

Google+ continues to sink with a second massive data breach. Abandon ship now

Google+ was scheduled to shut its doors in August 2019, but the second security breach in only a few months has caused the company to move its plan forward a few months. It might be a good idea to delete your account sooner than later.