U.S. LeEco employees have reportedly been met with delayed payroll according to unnamed sources, which may further suggest that the Chinese media and hardware company is facing financial challenges following their buyout of VIZIO in 2016. While LeEco’s U.S. employees were set to receive their paychecks on March 31st, according to the report employees were informed that pay would be delayed until today, April 4th, as LeEco ran into problems with moving money from China to the U.S. to pay their employees. The payroll has since been met though as it’s also reported that paychecks were given to employees as of today in accordance with the information they were given.
Even though payroll now seems to have been given to employees it potentially poses a problem for employees down the road as it may incite doubt in the security of payroll coming in on time in the future. LeEco, who paid upwards of $2 Billion for VIZIO in 2016 was recently reported to have com up against some challenges over the acquisition as some thought that the deal may have to be cancelled. Not more than a couple of days later though it was also reported that LeEco was able to secure a $2.2 Billion investment into the business so it can spread that money across its various media entertainment companies.
LeEco has services across a range of different markets including mobile devices, media, and electric cars, and aside from the VIZIO acquisition which was intended to allow them an entry point into the U.S. market they also make and sell their own brand of LeEco smart TVs, all of which are bundled with LeEco’s software that lets consumers access its various media entertainment properties and services. The rapid expansion has played a roll in LeEco facing challenges with finances in recent months since the announcement of their deal and although they have so far been able to keep the VIZIO deal from completely falling apart, it seems clear with this most recent report about payroll issues that the company is still facing some problems with cash. LeEco is set to be unveiling a range of new smartphones in the near future which could very well help them in the financial department.