LeTV Internet car crisis: layoffs 20%! LeTV shares plummeted 9%

In the email of Jia Yueting’s “sinful sin” on November 6th, Jia Yueting was convinced that LeTV faced “increasing financial and organizational pressures” and took responsibility for it. On November 15th, LeTV Eco WeChat pushed "I am moving to China!" LeEco and LeEco's Ecology have received a $600 million investment, and the current funding problem is about to be resolved. It was announced that Jia Yueting, through his more than ten students from Cheung Kong Graduate School of Business, gathered in LeTV Building and formally signed a total investment agreement of 600 million US dollars with LeTV Holdings. In addition, on the afternoon of November 15, LeTV announced by e-mail that LeTV will suspend its horizontal expansion in the Asian region and plan to strengthen prudent financial management. It will focus on cash flow growth and expand the user base. Boosted by this news, LeTV's share price once stabilized and stabilized, and LeTV's capital chain crisis seems to have been temporarily relieved.

However, today, according to the news of Rilakkuma Sports, LeTV Sports has decided to cut 20% of its overall workforce (about 200 people), of which the intelligent hardware department will lay off 50% of its employees; and LeTV Sports Editor-in-Chief Yu Ming has submitted his resignation and is about to leave. The business sector has also been adjusted. The fundamental reason behind these personnel changes is the shortage of funds. Affected by this news, on the afternoon of December 6, LeTV's share price plummeted more than 9%. Finally, at the price of 35.80 yuan per share, the stock price fell more than 7% (as shown below).

On the afternoon of December 6, LeTV responded to Sina Technology with a rumor of layoffs. The overall optimization of LeTV Sports is around 10%, and different departments are not the same. The specific optimization ratio is determined according to the actual business conditions of each business. At the same time, LeTV Sports announced the structure and personnel adjustment, the establishment of new media and online business groups, offline business groups and sports consumer business group.

On November 7, Jia Yueting said in an exclusive interview with Tencent Technology that LeTV will not lay off employees, but at the end of the year, the final elimination system will be strictly adopted, and the elimination ratio will be at least 10%. He also mentioned that LeTV Sports has become the absolute industry leader in two years, and the adjustment will be relatively small. However, Sina Technology today quoted close to LeTV sports people, LeTV sports layoffs will be as high as 60%, "only retain research and development and a small number of products, 1,000 companies are estimated to have less than 500 people left." -- The adjustment and vibration of LeTV Sports is much more intense than what Jia Yueting said at the beginning.

The author once pointed out that with content as a selling point, the promotion of LeTV's mobile phone and TV sales is far less optimistic than LeTV's estimate. As for when LeTV will be able to achieve "hematopoiesis" is even more out of reach. Compared with mobile phones and TV hardware, the cost of investment and the amount of losses are much larger, which undoubtedly makes the content of profit support even more pressure. LeTV's content is also relying on uninterrupted "blood transfusion" to maintain profitability. In addition to mobile phones and televisions, plus a car, the pressure can be imagined.

At the Sports Industry Forum LeSports Connects held in Dongguan on November 30, Liu Jianhong, the co-president of LeTV Sports, said: "We have lifted the copyright to the sky-high price, then the goods should conform to the business logic. I don’t think there should be so many TV stations broadcast free of charge. This is the biggest damage to the business value of the Super League."

Liu Jianhong’s statement also reflects the enormous financial pressure caused by copyright fees to LeTV Sports.

When big companies start to save small money, it shows that their finances are in crisis.

In fact, Internet companies want to build a car, not so hard. As an Internet company, Ali and Ma Yunyuan are much more pragmatic than LeTV and Jia Yueting. Directly looking for SAIC cooperation, and then the "world's first Internet SUV" concept of the Roewe RX5 debut. Sales in October have exceeded 20,000. LeTV's auto business is still in the air, and the stock has cashed out 10 billion yuan. It has also done a few PPTs and got a concept car that can be opened at the press conference. There is no more than eight characters from mass production.

The car is really not made by anyone.