He also denied rumours that the company is looking to exit the country. The company's advertising budget alone, for promoting its products and offering deals was around Rs 80 crores per month which led to cash exhaustion.
It's too early to comment on LeEco's future as we don't have concrete word from the company. It exited offline sales due to limited funds allotted for the Indian market following the same. Speculations of trimming down the Indian team had started in December previous year, when reports of LeEco India exiting offline sales of smartphones, had started creeping in; and that it would cut 1,000 in-shop temporary jobs. While the company's India chief operating officer Alex Li has reportedly confirmed the exit of Jain and Ghosh, he declined reports of the company's India exit.
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Right off the bat, Musk's tweet seemed overly optimistic, if not downright absurd. "That sounds like a great idea", he added. Her letter was for a school project, but unlike many letters to celebrities or other figures children admire, it bore fruit.
The Mumbai and Delhi offices already have minimal staff, and the company is now cutting jobs at the research and development centres in Bengaluru. It also poached two top level executives in order to strengthen its presence. "All businesses need to be profitable to be sustainable. Around January there were rumors that Atul might be leaving and any hope for recovery was bleak also there were no new launches being executed", the person further said. Though, another senior executive said that company plans to exit India as it is finding it hard to push the products to Indian consumers, and that demonetization has worsened the conditions for LeEco.
LeEco apparently told ET that they're not exiting the country and that they're scaling back operations inline with their profitability and revenue targets for the year. Another senior industry executive said LeEco was now liquidating stock and will exit in the next few months. Bengaluru research and development centers are affected too. But since the word is pretty much out there, we don't expect this to remain a secret for long now. "In the past one year, LeEco India has gained market recognition and the initial stage of market seeding has been successful", TechCrunch quoted an official statement from LeEco.