Never ending investments in expansion and acquisitions has resulted in a serious cash flow problem for LeEco who now are making big changes to their operations in India!
LeEco has recently announced that it will be taking all sales online and will continue to work with Flipkart, Amazon, Snapdeal and their own online store, but offline sales will be halted. Apparently Sangeetha Mobiles, the company dealing with LeEco offline sales, has been informed that no more orders will be filled due to LeEco’s current financial situation.
Gizchina News of the week
Those are not the only changes though! LeEco apparently drastically reduced its massive advertising budget and cut almost 1000 temporary jobs, plus new launches have been postponed until things turn around.
LeEco have been growing at a huge pace with their India based operation kicking off in January this year, followed by partnerships with Aston Martin, Faraday Future and most recently starting sales of their new flagship in the U.S
Hopefully this is just a temporary issue and LeEco will be back to full strength soon, but looking their their current problems that doesn’t look very likely!