Mar 20, 2017 06:42 AM EDT

LeEco Is Reportedly Cutting Its American Workforce Due To Cash Woes, Plans To Sell Headquarters In Silicon Valley

Chinese technology and entertainment company LeEco has encountered some business challenges after its expansion efforts. As a result of its cash woes, it has been reported that the company is cutting its American workforce and is planning to sell its Silicon Valley headquarters.

Sources told Reuters that LeEco is struggling to pay its debts and is looking to sell its 49-acre Silicon Valley property less than a year after buying it from Yahoo Inc. Founder and CEO Jia Yueting admitted in a letter addressed to staff back in November that the company was facing some problems after expanding at a very ambitious rate.

LeEco, which manufactures smartphones, TVs, and accessories, has recently ventured into vehicle making. The company is said to be struggling to meet its goals, which include beating Tesla Motors in producing premium electronic cars.

The tech company is reportedly planning to sell its Silicon Valley site to Chinese developer Genzon Group for $260 million. The source, who wished to remain anonymous, said that the amount is $10 million more than what LeEco paid for the property back in June.

Genzon Group confirmed that it was in talks to buy the property, but declined to reveal why it was interested in it. It was said that the Chinese developer is looking to build a 140,000-square meter office in the area in a project called Burlingame Point.

Sources also mentioned that the Silicon Valley workforce has been downsized. It was claimed that at least half of its workers have been laid off. It was previously reported that LeEco employed more than 500 employees back in October.

Earlier this month, it was reported that LeEco has downsized its presence in India. Techcrunch reported that the company has reduced its personnel in the country from over 350 million staff to a total of 80. But unlike its Silicon Valley headquarters, the company’s India site is here to stay.

In a statement, LeEco said, “India is one of the most strategic markets for LeEco and hence there is no exit plan.”

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