Company Assets Frozen, LeEco's Fate is Increasingly Stumbling

Company Assets Frozen, LeEco's Fate is Increasingly Stumbling
LeEco may be one of the most aggressive technology companies to expand its business services. Starting from a content streaming service provider, LeEco's business line now stretches to TV sets, smartphones, sports devices, to electric vehicles.

But now, the fate of vendors from the Bamboo Curtain country is no longer the same. The reason, LeEco experiencing a massive financial crisis. Business analysts assess LeEco will continue to slump and could go bankrupt if not do the initiative to overhaul its business model.

Latest, LeEco's private asset, Jia Yueting, was frozen by a court in Shanghai, China. Assets worth 1.24 billion yuan is money belonging to Jia, his wife, and three other people who still have important links with the company.

Assets with unmitigated value are forced to be blocked. Because, LeEco can not afford to pay interest on bank loans to fund its smartphone business.

The company's turmoil began when LeEco plans to sell its equipment in the United States (US) market by the end of 2016. Unfortunately, LeEco is too heavily poured funds and finally difficulties.

LeEco was forced to cut operating costs, even reducing the number of employees by laid off.

As of May 2017, LeEco has also reduced approximately more than 300 employees in the US. That number reaches almost three-quarters of the local workers there.

This reduction is aimed at increasing focus on core markets and digital content business after 2016, Jia said the company's expansion into China is too fast and costly.