The company's smartphones were well-received in India, and it even launched some brilliant 4K TVs (read our review) in the country. The company, which outflanked Xiaomi, Oppo and Vivo with an advertising budget as high as Rs 80 crore a month, had exited sales through offline retail stores in December.
Industry sources have maintained that the losses at the parent firm coupled with a shift in focus towards China and USA could be reasons for the company's possible exit from India. Unfortunately, it appears that the company didn't have the means to make a dent in India's cutthroat smartphone market.
It has only been four months that Jia Yueting, founder of LeEco, announced that his company was fast running out of cash, and now, as per reports, the company has fired 85% of its India staff, followed by two leadership exits. Troubled LeEco lands 16.8 billion yuan lifeline after selling stakes in video, movie assets to Sunac ChinaHe said the company has been reassessing its Indian operations since a year ago.
Founder Jia Yueting had said expansion of business from smartphones to driverless cars had cost the company a lot of money in in an email to his employees in November a year ago.
Alex Li, the COO of LeEco India confirmed the exit of the above-mentioned senior executives, but he denied the plans to exit the Indian market.
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The company has cut down jobs at its offices in Mumbai and Delhi locations in India and at present it is firing employees at the research and development centres (R&D) in Bengaluru, the report said citing the sources, as saying. "All this certainly does not signal a company in wind-up mode", read the company statement.
Update: Debashish Ghosh has confirmed his exit to MediaNama and said that "I left LeEco in the week of 6th Feb itself".
"The resource head count in India is well aligned to the scale of operations envisioned and in line with industry benchmarks", it added.
In the email sent to his employees, Jia wrote "We blindly sped ahead, and our cash demand ballooned". Already, the company has lost some of its top executives in India. "The company's recent moves were well thought out and planned as part of a longer-term strategy for the Indian market, and not triggered by the purported slump in sales due to demonetization", the person said. "All businesses need to be profitable to be sustainable".