A few days ago, it ws reported that LeEco India had laid off a large percentage of its staff. The lay off was interpreted as a sign that the company would soon be leaving one of the major smartphone markets in Asia. The company has however issued a statement saying otherwise.
Although the Chinese manufacturer didn’t dispute the layoff, but it says it has no plans to leave as “India is one of the most strategic markets for LeEco”. It even added that it is preparing for the launch of its next generation TV in the country.
A company representative also revealed to Reuters that there are 80 employees at the moment, down from about 350 at the end of last year.
LeEco’s woes started when the content of a memo written by CEO, Jia Yueting was made public. The memo warned of an impending cash crunch caused by a rapid expansion at an “unprecedented rate”.
A former employee who also spoke to Reuters said he had resigned after six months because the letter left him discouraged. The unnamed ex-employee said “I joined the company in mid 2016, and there were a lot of promised projects in the pipeline. The projects were all stalled and that got me worried”.
If LeEco isn’t going anywhere, it is still evident that it has scaled back on its operations massively. The small team on ground is probably just for the sake of product releases like its smart TVs, bluetooth speakers, and headphones.