11 months since it entry, Chinas LeEco severely downsizes its India plans
The company will layoff its employees in India in the face of uncertainty that is forecast for the global economy in the coming year.
China's technology giant LeEco has run into rough weathers globally. The company confirmed to Zeebiz that it will be laying off its employees in other regions including India.
“Our business strategy has been re-calibrated in view of the overall volatility and uncertainty that is forecast for the global economy in the coming year. India being a fledgling operation, LeEco’s priority is to be an agile and nimble organisation that can withstand economic headwinds and sustain a profitable operation, at all costs. To this end, LeEco has implemented a right sizing exercise across all its offices in various geographies, including India," LeEco said.
LeEco further said that the decision to layoff its employees in India was not led by performance or competence parameters but entirely guided by business imperatives.
LeEco further said that in ensuring a “right sized” organisation, the company will show utmost consideration for the affected employees.
“Besides ensuring 100% legal compliance to all labour related regulations, LeEco has been extremely sensitive and humane in its approach. The company is open to offering outplacement services to affected employees who specifically seek assistance to orient them toward the future and help them feel supported as they started their new life as a job seeker,” it said.
It also added that the company had not taken decision on a “whimsy” and was necessary part of LeEco's efforts to transform the company and steer it to the path of profitability.
LeEco had entered the Indian market in January this year and recently admitted to expanding globally too fast too soon. It has also been reviewing its plans in various countries.
It was only in June this year it entered the offline market with the launch of Le 1s to retail outlets and increased its partnerships. The company has also applied for single brand retail license in India in April and was looking to open their own outlets in the country.
The company in August set up its manufacturing plant in Greater Noida. While it was initially producing 60,000 smartphones a month, it was expected to produce 200,000 units a month by the end of the year.
The company wishes to reiterate that the decision process was not led by performance or competence parameters but entirely guided by business imperatives,” the company said in a statement.
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