LeEco might Exit India after Firing 85% of its Staff in India
LeEco, the global internet company entered India a few years back and hit the market hard with their budget smartphone offerings. The company had a huge bet on marketing and in fact, the initial time which had here was going quite good. However, things started changing when the company’s owner Jia Yueting wrote a long letter admitting that the company is running out of cash. And now according to the new reports which we have, it looks like they are having a hard time sustaining their business in India.
According to the source, LeEco fired 85 percent of its working employees in India. Now, this is a huge number considering that they were doing pretty good in the market. However, this was expected to happen due to a lot of reasons. LeEco had a huge budget for advertising and boy, they spent a lot of money on that. But in a way, it did help them to get an upper hand over some of the competitions in the country. LeEco soon left behind some of the big names from China like Xiaomi, Oppo, Vivo, etc. and the 80-crore advertising budget has a lot to do with that.
LeEco also exited from offlines sales in India from December and in a way, it could be said that this is when things started to fall apart. However, amidst of this, the company also launched their SuperTV range of televisions here in India, although the sales numbers anyway stayed low to the ground for the most part. And soon after launching the TV, it was then brought to our notice that the ErosNow partnership which the company had was also ended. We had exclusively reported about it and you can read it here for more details on the same.
Now LeEco also doesn’t appear to launch any new smartphones in India. Even the existing smartphones are now getting updated with the latest firmware and this is quite shocking indeed. And now it has been reported that they are on a firing spree. The company is firing staffs from it Bengaluru Research and Development centers, whereas the Mumbai and Delhi offices will be left with minimal staff support. It certainly does looks like they are having a hard time sustaining here in India and not to mention the fact that demonetization has made things even worse.