(Yicai Global) May 12 -- Leshi Holding (Beijing) Co.’s subsidiary LeTV Sports Culture Develop (Beijing) Co. (LeSports) is preparing a round of layoffs, and over half of its staff will be cut, Lanxiongsports.com reported, citing multiple sources.
The intelligent hardware division will be shut down, and at least 50 percent of workers in the paid-member and marketing departments will be axed, the report said.
The company had more than 1,000 employees at its peak. Around 300 or fewer will be left after the downsizing.
Polarline Development Ltd. filed a lawsuit against LeSports in Hong Kong yesterday, seeking payments plus interest for overdue advertising fees as well as other expenses, another source said.
Less a year ago, LeSports was a leading player in the field with broadcasting rights for national and international premier sporting events held for the Chinese Super League, AFC Champions League, Asian qualifying tournament for the 2018 FIFA World Cup Russia, UEFA Champions League, English Premier League, ATP, and CBA, some of which were highly sought-after exclusive media resources.
Leshi’s cash crunch forced LeSports to abandon many of the deals including those covering the Chinese Super League, AFC Tournament, and ATP broadcasts this year.
The company retained a small number of broadcasting agreements for next season.