The Chinese Multinational Technology provider, LeEco has fired 85% of its Indian workforces. The Chinese billionaire Jia Yueting acknowledged his company is running heavy on the financial crisis. The company has fired its staffs in Delhi and Mumbai offices. They are also planning to shut the R&D lab in Bangalore.
According to reports, Atul Jain, Chief Operating Officer of Smart Electronics Business and Debashish Ghosh, Chief Operating Officer for Internet Application Services and Content have resigned from their posts. The company has also stopped selling its products offline in December 2016. The company has outflanked its competitors like Xiomi, VIVO, Oppo in advertising budget which was more than Rs.80 Crore per month.
In November 2016, Jia Yueting has e-mailed their employees quoting that the company has run out of cash for rapidly investing in new smartphones and driverless cars. The statement also warned about cutting cost and release efficiencies.
The rumors were raised that after the utter financial crisis, the company is likely to quit from the country. However, the officials cleared that they will not back off from the country but will be cutting the jobs.
LeEco said in a statement that, “India is one of the most strategic markets for LeEco. The company is gearing up for the launch of its next generation TV scheduled the coming week. Premium models of smartphones too are to follow. LeEco television and smartphone business continues in India and has gained significant market recognition.”
The company was founded in the year 2004 and entered into India in 2016. LeEco sold its products through E-commerce websites like Amazon, Flipkart, Bestbuy etc. The company is currently operating from China and India and will be planning to explore in US and offline services as well. Read other employee firing news