04 March, 2017
The company, which had a massive advertising budget of Rs. 80 crore a month, stopped selling its products through offline retail stores in December. Moreover, LeEco India has a robust R&D team working for India as well as LeEco globally, as the company values the R&D function, as it is integral to long-term business.
LeEco got into India only a year ago in February with its smartphones and Televisions being sold exclusively on Flipkart.
After laying off a substantial number of employees - as many as 85 per cent staff across the sales, marketing and distribution departments in India, Chinese internet and technology conglomerate LeEco on Friday denied plans to exit the India operations as of now.
LeEco, the Chinese smartphone and electronics brand which entered the Indian market past year, has reportedly laid off 75% of its Indian staff.
LeEco's Mumbai and Delhi offices are currently running with a skeletal staff, while the company is now firing people in its Bengaluru office. "All this certainly does not signal a company in wind-up mode", the statement read.More news: Dwyane Wade delivers vintage slam to seal victory against Phoenix Suns
As per industry executives, LeEco would exit India because of both the financial crisis at the parent firm and their decision to focus on China and the US.
The company which sells smartphones, television sets and related accessories in India said that its headcount in India is "well aligned to the scale of operations envisioned and in line with industry benchmarks,".
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 past year.
Bloomberg had cited the billionaire chairman's letter likening the expansion to speeding blindly, causing cash demands to balloon. It also poached two top level executives in order to strengthen its presence. Demonetisation also had a big role to play in the falling sales in the Indian market. He said the flagship models will not be launched in India. "All businesses need to be profitable to be sustainable. So, LeEco found it neither here nor there", he said, requesting anonymity.