LeEco Lays Off 270 Employees In India, Says Won't Exit

LeEco, which has cut its headcount in India to 80 from 350 in December previous year, will not exit the country, the spokesperson said. The company, which had a massive advertising budget of Rs. 80 crore a month, stopped selling its products 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 United States could be reasons for the company's possible exit from India.

Chinese handset maker LeEco today refuted reports of winding up its India operations but admitted that it has undertaken an "optimisation exercise" in the worlds second largest smartphone market.

Chinese conglomerate has fired 85 percent of its staff in India.

LeEco, the Chinese smartphone and electronics brand which entered the Indian market previous year, has reportedly laid off 75% of its Indian staff.

Sources have told the Economic Times that people are being let go from LeEco's Delhi and Mumbai units as well as from their R & D centre in Bengaluru.




India Chief Operating Officer Alex Li confirmed the exit of LeEco's executives but denied plans to exit India or liquidate stock. "All this certainly does not signal a company in wind-up mode", the statement read.

Note that in November a year ago, LeEco's co-founder Jia Yueting said that the company was running out of cash in its bid to expand its businesses from electric cars to smartphones.

The company will exit the country in a few months. He said that the company is restructuring, which is why they had to fire employees, as they have a new vision for their business in India.

In the email sent to his employees, Jia wrote "We blindly sped ahead, and our cash demand ballooned". It also poached two top level executives in order to strengthen its presence. "So, LeEco found it neither here nor there", he said, requesting anonymity. Demonetisation also had a big role to play in the falling sales in the Indian market.

Industry executives attributed the likely exit to the financial crisis at the parent firm and its decision to focus on China and the USA, the report said.

(Copyright © 2015. All Rights Reserved.)
 
Recommended

HSU chosen for list of top volunteer-producing colleges
Peace Corps volunteers will be eligible for significant financial aid in each of the three programs as part of the Paul D. CSU is the only university in Colorado ranked among the top 10 in the Large Colleges and Universities category.

Today Analysts Focus on Groupon, Inc. (GRPN), Office Depot, Inc. (ODP)
The company reported $0.11 earnings per share for the quarter, beating the Thomson Reuters' consensus estimate of $0.10 by $0.01. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link .

Pep has Calamity Bravo's back as City reach q-finals
Ultimately, Huddersfield was outclassed, which was to be predicted after making nine changes from its first-choice lineup. Soon at it again Aguero assisted Pablo Zabaleta sealing the victory within the first half.

Ukip donor Banks will stand against party's only MP
UKIP's only MP has discussed re-defecting back the Conservatives at the next election with senior Tories, the Sun can reveal. Ukip is in an increasing state of turmoil after failing to win the Stoke Central by-election last Thursday.

Spotify Will Take on TIDAL With Hi-Fi Music Tier
Spotify, the world's largest music subscription service, today announced a major milestone: 50 million paid subscribers. Spotify is preparing to launch a lossless audio version of its streaming service , according to multiple sources.

Europe's highest active volcano Mount Etna erupts in Sicily
Etna, at 3,330 meters (10,926 feet), is the highest volcano in mainland Europe and can burst into action several times a year. A team flew helicopters over Etna and dropped concrete blocks at the edge of the lava tunnel to plug the hole.

Obama officials worked to leave investigators a trail on Russian Federation
I am expected to be part of the principals committee - so the senior-most people who have voices on the National Security Council. But under questioning, Coats appeared misinformed about a subsequent modification of the order that give Pompeo a seat.

Brandon Jennings Agrees to Sign with Wizards After Clearing Waivers
ESPN .com's Chris Haynes first reported Jennings reached a verbal agreement with the Wizards for the rest of this season. The offensive duties are mostly shared by the Wizards' front court duo of John Wall and Bradley Beal.

Jefferies Group Weighs in on Domino's Pizza Inc's FY2018 Earnings (DPZ)
Analysts await Domino's Pizza Inc (NASDAQ: DPZ ) to report earnings on Feb, 28 for the fiscal quarter ending Dec 2016. Oasis Management Co Ltd. acquired a new stake in shares of Domino's Pizza during the second quarter worth $5,190,000.

Trump prepares to issue new travel ban
Four officials said to the news agency that the decision followed pressure from the Pentagon and State Department. A senior administration official told CNN that they don't want to undercut coverage of the president's speech.

Perth Adele impersonator joins her idol for onstage selfie and singalong
The Grammy and Oscar victor could add stand-up comedian to her talents, as she delighted the crowd with several amusing anecdotes. Singer Adele was left starstruck when she pulled a drag queen impersonator onstage with her and handed over the microphone.

Try crepes with a twist this Pancake Tuesday
Britons are looking forward to making and devouring pancakes with family and friends to celebrate Pancake Day today. Heat a small frying pan and grease with butter then ladle in enough batter to coat the base of the pan.

Police sharpshooter accidentally opens fire during French President Hollande's speech, two injured
A police sharpshooter accidentally shot two people while French President Francois Hollande was delivering a speech Tuesday. Mr Hollande was speaking at the opening of a high speed rail service between Tours and Bordeaux when the shot was sacked .

Katy Perry & Orlando Bloom Split, Taking a 'Loving' Break
Moreover, sources revealed that Erin swapped her place card just to sit near the actor. Engagement rumors were constantly part of Katy and Orlando's year of romance.

When Do Companies Have to Comply With the DOL Fiduciary Rule?
The move is expected to at least delay application of the rule, which is supposed to take full effect April 10. The Labor Department said the 60-day delay would give it time to complete the evaluation requested by Trump.


More News

News
More News