Chinese conglomerate LeEco has fired 85 percent of its employees in India and may be looking to exit the country, reports the Economic Times today.
The layoffs closely follow the resignation of its smart electronics business Chief Operating Officer Atul Jain and internet applications, service and content business Chief Operating Officer Debashish Ghosh.
LeEco is global internet company, which sells smartphones in India.
Late last year, LeEco’s billionaire owner Jia Yueting, who was also the largest shareholder of Coolpad group, had admitted in a long letter to employees that LeEco was running out of cash.
“We blindly sped ahead, and our cash demand ballooned,” he had said in the letter as per media reports. To overcome the cash crunch, reports suggested, Yueting planned to cut his annual income, trim growth target to modest levels, and slow down on expansions.
With advertising budget at a hefty Rs 80-crore per month, the company which outpaced Xiaomi, Oppo and Vivo, had exited sales through offline retail stores in December.
Both the Mumbai and Delhi offices of the company are said to be left with minimal staff, while firings are on in its Bengaluru research and development centres.
While confirming the exit of the two top executives, India Chief Operating Officer Alex Li denied any plans to exit the country.
Even as Li denied much impact on sales from demonetisation, another senior executive, with a marketplace doing business with LeEco, said on conditions of anonymity that the company plans to exit India as it is finding it tough to find a winning formula, and demonetisation has worsened matters.
Source: Money Control