LeEco admits to job cuts but denies closing down India biz

Just as the shock subsides from last week’s Snapdeal layoffs, more India firing news comes in. This time, it’s LeEco, the Chinese gadget maker that’s been busy expanding into India. The $9.2 billion company is laying off a large number of its India staff, The Economic Times reported this morning.

“[The layoffs] haven’t started yet, but they are happening,” Subhashini Rajaram, LeEco India senior manager of public relations and communication, tells Tech in Asia. “Closing down India is not true.” The job losses are part of a reorganisation strategy, she said.

ET reported 85 percent of the company’s staff has been laid off.

In February, Indian Television reported that 250 of the 400 LeEco employees in Mumbai, Bangalore, and Delhi had been fired between late last year and early this year.

LeEco, best known for its smartphones and TVs, kicked off 2016 with an entrance into India despite reports it was running out of cash after swift expansion into several new countries and bankrolling two new electric car brands – US-based Faraday Future and China-based LeSee.

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This is an excerpt from Tech in Asia. You can read the full article here