LeEco fires 85% of it’s staff, The tech giant may shutdown its operations in India

leeco
LeEco

Chinese conglomerate LeEco has actually fired 370 employees, which form 85% of their overall strength in what the industry observers speculate is a sign of its eventual departure from the country, according to media reports.

According to a report by Economic Times, the company has fired 370 employees, which form 85% of its India staff and two senior executives — Chief Operating Officer (Smart Electronics Business) Atul Jain and Chief Operating Officer (Internet applications, services and content) Debashish Ghosh have resigned from the company.

Here are 3 strong indications which gives us a hint that the Chinese tech giant may shutdown its operations in India very soon:-

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Cash Running Out

In a letter obtained by Bloomberg, Jia said: “We blindly sped ahead, and our cash demand ballooned. We got over-extended in our global strategy. At the same time, our capital and resources were in fact limited.” Reuters also received a copy of the same letter, which read: “We are starting to see signs of big company disease, such as low individual performance and organizational redundancies.”

Senior Leaders Quit

According to a report, two senior executives — Chief Operating Officer (Smart Electronics Business) Atul Jain and Chief Operating Officer (Internet applications, services and content) Debashish Ghosh have resigned from the company.

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Demonetization Effect

According to a senior executive working with a leading e-commerce portal, which partnered with LeEco for their Indian entry has confirmed that demonetization had a very negative impact on the overall sales of LeEco’s flagship models, and the shock was too massive to ignore.

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