Chinese manufacturer LeEco, to miss $100 million revenue goal

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Technology conglomerate LeEco had some big plans after its entrance on the U.S. market, but they’re slowly scaling back their ambitions right now, after missing the projections for 2016 sales by a pretty wide margin.

According to Bloomberg Technology, the company which oversees a big range of business in its homeland, China, is now planning to cut a third of the jobs in the United States, despite their big ambitions from last year.

The expectations were incredibly big!

Back in October, LeEco entered the United States with a big launch event in San Francisco, where they showcased a wide array of products, including UHD TVs, VR headsets, electric bikes and, of course, smartphones. However, they failed to make the impression they were looking forward to, generating a total revenue of less than $15 million, by the end of 2016. And this makes a huge contrast with their initial goal of $100 million until December 31.

Currently, the Chinese company is selling just TV sets, smartphones and some accessories, so their decision to terminate 175 job contracts doesn’t come as a surprise. This would reduce their U.S. staff to just 300 people and, considering this rhythm, it might as well get even smaller in the near future.

When asked about the upcoming job cuts, LeEco’s representatives refused to comment.

The attempt to close the first major deal: failed

In order to make things even worse, the company announced this Monday that they are abandoning the plans to acquire TV-manufacturer Vizio Inc. for $2 billion, due to regulatory hurdles, in a deal which was supposed to help LeEco improve the position of the brand among American customers.

However, the two companies are planning to collaborate, trying to bring Vizio devices to China, as well as integrate LeEco content into Vizio’s platform.

When they made their debut in the United States, everybody was very curious if LeEco will be able to implement its business model used in China. After opening a few modes offices in Silicon Valley, they eventually started focusing on investing in some local startups, which, as you can see, wasn’t exactly the winning formula.

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