In less than a year of its release, LeEco had a drain of cash which lead to the high-flying company firing over 85% of its Indian staff and allowed two leadership exits. The industry, however, analyses this gradual disappearance of this Chinese company from India. Jobs have been shed at both the Mumbai and Delhi offices that currently have a skeletal staff, while the company is now firing people at the research and development centers in Bengaluru, sources said.
According to industry sources, top executives -Atul Jain, chief operating officer of the smart electronics business, and Debashish Ghosh, chief operating officer for Internet applications, services, and content -have resigned from their positions. The company, which surpassed mobile giants like Xiaomi, Oppo, and Vivo with an advertising budget as high as Rs 80 crore a month, had exited sales through offline retail stores in December.
Jia Yueting, founder, and CEO of Le.com and LeEco, had written an email to employees saying the cash burn-rate of the firm had been too fast as it expanded into businesses ranging from smartphones to driverless cars. Admitting that the global expansion of the company went way out of the means of the limited company’s capital and resources, the founder said that it would cut costs and realize efficiencies. Bloomberg had cited the billionaire chairman’s letter likening the expansion to speeding blindly, causing cash demands to balloon.