(ECNS) -- Chinese smartphone maker Coolpad Group Ltd has confirmed cancelling employment agreements with hundreds of new graduates amid what it calls business restructuring, a potential sign of its largest shareholder LeEco's financial woes.
Online comments said Coolpad has terminated the contracts with about 300 employees recruited from universities this year.
But the smartphone marker downplayed the scale, saying it only signed contracts with about 260 while some of those qualified for working abroad will retain their jobs.
Coolpad added it is restructuring its business to focus more on the international market, efforts that has led to job cuts in its domestic operation. It also paid 3,000 yuan ($435) in compensation to each graduate with a bachelor's degree and 4,000 yuan to those with a master's.
A major second-line phone brand, Coolpad became a branch of Chinese Internet conglomerate LeEco last year. LeEco made the headlines recently for a spat over 1.3 billion yuan in funds invested in the Yidao private car service. The bad news continued as Coolpad issued a warning saying it posted an operating loss of HK$460 million ($59 million) during the first quarter of the year, and expects to lose HK$600-HK$800 million in the first half.