LeEco slashes over 75% of its Indian workforce, denies claims of exit
LeEco announced at the end of last year that it would downsize its operations in all markets, and the company has followed through on its word today by letting go of over 75% of its Indian workforce. In a statement to Gadgets360, LeEco said that it reduced its headcount from 350 to just over 80, with the company calling the team size "in line with industry benchmarks."
However, a report out of Economic Times suggested LeEco is looking to exit the market altogether, but the company has refuted those claims, stating that India is a strategic market for the manufacturer:
The company's phones have been well-received in India, and its foray into the TV market has also yielded results. But the company's decision to sell devices at manufacturing cost and spend vast sums of money on advertising — contrary to Chinese rivals Xiaomi and OnePlus — have led to a cash crunch, which was alleviated with a recent $2.4 billion investment.
Chinese vendors now account for over 46% of the smartphone market in India, and while the strategy of selling phones at manufacturing cost has paid dividends for them over the last few years, the model isn't sustainable, as LeEco is finding out. LeEco already announced that it would no longer sell phones offline, and with today's "optimisation exercise," the company is now focusing on creating a sustainable and profitable business model.
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Harish Jonnalagadda is a Senior Editor overseeing Asia at Android Central. He leads the site's coverage of Chinese phone brands, contributing to reviews, features, and buying guides. He also writes about storage servers, audio products, and the semiconductor industry. Contact him on Twitter at @chunkynerd.
Well that didn't take long.
They make a great phone. I wish them well into he turnaround.
This is one fk'ed up company, being purchased by this company does not bode well for the future of Vizio.
I feel sorry for Vizio