LeEco Lays Off 270 Employees In India, Says Won’t Exit
LeEco lays-off around 200 employees in India
Chinese electronics major LeEco has laid off nearly 80 percent of its employees in India as the maker of smartphones and TVs battles a cash crunch back home. Two of its top executives in India have also quit, a spokesperson told BloombergQuint.
Downsizing by LeEco within a year of its launch in India contrasts with an aggressive push by other Chinese smartphone makers. They accounted for 46 percent of the overall Indian market in the three months ended December 2016, with none of the local brands making it to the top five, according to market research firm International Data Corporation (IDC).
LeEco, which has cut its headcount in India to 80 from 350 in December last year, will not exit the country, the spokesperson said.
India is one the most strategic markets for LeEco and hence no exit plan. In the past one year, LeEco India has gained market recognition.LeEco Spokesperson To BloombergQuint
The two India executives who have quit are Atul Jain, chief operating officer of smart electronics business, and Debashish Ghosh, chief operating officer for internet applications, services and content.
The company said it is focusing on upcoming product launches and will also invest in marketing initiatives in India.
In November, Bloomberg had reported that LeEco co-founder Jia Yueting wrote a letter to employees stating his technology empire is running out of cash to sustain a headlong rush into businesses.
Apart from China, LeEco had plans to scale up in the U.S. and India even as it was expanding into other territories.