In the recent announcement, Chinese internet and technology conglomerate, LeEco has decided to terminate around 85% of its staff belonging to Indian Unit. It has even allowed two leadership exits before which could be their reason for their withdrawal from India.
As per media reports, two top executives who have resigned from leadership posts include - Atul Jain, chief operating officer of the smart electronics business, and Debashish Ghosh, chief operating officer for Internet applications, services, and content.
Jia Yueting, founder and CEO of LeEco has admitted four months before that LeEco was fast running out of cash and present day mass termination seems to be the result of that. He has even acknowledged so by writing an email to employees, in November 2016, explaining them the situation that the company does not enough cash as they invested into the expansion of ranging from smartphones to driverless cars.
Media reports suggest that industry perspective concludes that financial crisis at parent company may be responsible for fallout in India.
The massive firing has taken place in LeEco offices based in Mumbai, Delhi and also at the research and development centers in Bengaluru
In August last year, People Matters reported that Chinese Tech Company, LeEco had set aside 50% shares for global employees and within seven months the company is terminating huge staff in the Indian unit. Employees were offered shares from both parent global company as well as the regional companies where they work. LeEco also announced its partnership with three pioneering digital marketing companies in India namely – iCubeswire, netCORE and vCommission. Also, it had acquired $2 billion worth US TV maker Vizio.
LeEco, formerly called as Letv ( Leshi Internet Information & Technology) is one of the biggest online video companies running in China. Its headquarters are in Chaoyang District, Beijing. It was founded in November 2004. Its focus is on building ‘Le Ecosystem,’ an online content platform with the use of varied devices and applications.
Its businesses span from Internet TV, tech gadgets, video production and distribution to eco-agriculture, Internet-linked electric cars and e-commerce etc. It has launched six smartphones under its Le brand - the Le 1, Le 1 Pro, Le Max,Le 1s,Le 2 and Le Max 2.