LeEco’s troubles go from bad to worse this week with the news that the company is laying off 85% of staff in India.
LeEco, well LeTV, started off very well with a bunch of handsets that really captured the imagination of us and many of you, but things haven’t been so great for the company for the past few months.
The Chinese company bet enormously on the Indian market and, at least initially, things went pretty well. However, the situation has undergone a change since the company chairman , Jia Yuteing , admitted the company was in financial trouble.
Gizchina News of the week
According to new information, Leeco is going through a difficult time even India. Our source claims that the Asian brand has had to layoff ‘ 85% of its employees in India. This is a huge blow to the company and one we wonder how they can come back from such a decision.
The decision apparently comes after the company spent much of its 11 million Euro budget, along with issues with poor sales of the LeEco Smart TV’s in India.
At this stage LeEco have no plans to launch any new products to the Indian market, but current devices in the market should continue to receive updates. Will bring you more details as we get them.
They spent too much on marketting. And with cheap prices had very less profits and still had to compete against Xiaomi which lowered their sales.
Also they didnt even exist in offline market. Online Market online. No one spends soo much on marketting and adverts for a online only bussiness.
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Andi, you need to add that one ex-employee of Leeco already said that they are quiting India, that is far worse than expecting.
The failure from them comes that they tried to diversificate a lot to try to compete Xiaomi, which failed hard and now they are on the verge of the bankruptcy. If they go on that, is over
They should just partner up with Flipkart. They don’t need to pump so much money into India. They are trying to develop in India and the US, both at the same time, It’s not easy and will cost them alot. Specially, the for US market. Should just focus on Asia, for now and partner with online retailers for elsewhere.
I don’t understand, don’t they have financial/economics experts to predict this kind of stuff to happen? Don’t they plan ahead instead of just throwing money out of the window?