Chinese entertainment conglomerate is apparently going down. At least its India subsidiary is. Not that it is surprising, but, it’s not every day you see a company as big as LeEco – it is called the Netflix of China after all – nosedive into ‘such’ utter chaos. According to a new report in the Economic Times , LeEco that made its high-profile India debut – it was called LeTV back then — with a wide range of hardware consumer products in January 2016 is looking to exit the market here possibly due to financial crisis.
The company has reportedly fired 85 per cent of its India staff and two top-level executives, namely Atul Jain (chief operating officer of smart electronics business), and Debashish Ghosh (chief operating officer for Internet applications, services and content) have also reportedly resigned. This comes almost four months after Chinese billionaire Jia Yueting acknowledged that LeEco was fast running out of cash possibly because of its rampant expansion plans – which it in fact also put into effect — in India and in the West.
In India, in particular, the company had become synonymous with high-profile launch events and frivolous advertising spending.
LeEco entered India with a wide range of hardware consumer products like Le 3D Helmet, Leme Bluetooth Headphones and Super Cycle in January last year. This was followed by two smartphones, the Le Max and the mid-tier Le 1S. Thereafter, it invested in collaborations with companies like Eros Now to offer their content on its branded smartphones.
Then in April, it “showed” off a vast range of products in the US amid a gathering of journos from around the world, more importantly the West giving out the impression that the Netflix of China wanted to take over your home. The event did not have a Cycle, not even a motor cycle, but a full-fledged driverless electric car. It was a concept vehicle. LeEco called it the LeSEE and claimed that the LeSEE could challenge even the BMWs and the Mercedes in the days to come.
But, deep inside, it was spiraling down into a pit. Only, things are becoming clearer now.
For more news from India Today, follow us on Twitter @IndiaTodayTech and on Facebook at facebook.com/indiatodaytech
For news and videos in Hindi, go to AajTak.in.ताज़ातरीन ख़बरों और वीडियो के लिए आजतक.इन पर आएं.