LeEco recently said it has revised its business strategy and has “implemented a right sizing exercise” across all its geographies, including India. The clarification, which came following news reports that the company has fired a lot of employees in India and cut down on ad spending, reiterated that “the decision process was not led by performance or competence parameters but entirely guided by business imperatives”.
The release said India is one of top three markets for LeEco globally where it wants to focus on sustainability and profitability of the business.
“India being a fledgling operation, LeEco’s priority is to be an agile and nimble organization 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,” the statement said.
The company, however, accepted that its business strategy has been “re-calibrated” keeping in mind the uncertainty forecast for the global economy in the coming year.
LeEco India said it has ensured complete legal compliance to all labour related regulations and is even open to offering outplacement services to affected employees who specifically seek assistance to orient them toward the future.
“The current roadmap envisages LeEco’s businesses remain rooted to the realistic growth path that the company has set for itself. A newly-launched India-specific website; a robust product pipeline in the offing ; a more consumer-centric LeMall – LeEco’s own e-commerce market place – are all powerful signals that LeEco is determinedly ushering in change which is the new norm, especially in the fastest-changing internet technology landscape,” the statement said.
“These decisions have not been taken whimsically, but is a necessary part of LeEco’s efforts to transform the company and steer it to the path of profitability.”
LeEco entered the Indian market with a range of smartphones early this year, and subsequently expanded its business by launching a slew of high-end television sets.