Founder of LeEco Steps Down as the CEO of Leshi Holding

Founder of LeEco Steps Down as the CEO of Leshi Holding

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LeEco continues to try and recover from their ongoing financial issues. The company had big plans as they launched their expansion into the United States, but that was slowed to almost a dead stop once the financial issues became too much to bear. Not only were they running out of cash, but the debts they were in were also making investors really worried. It got so bad that many employees from their United States unit said their paychecks were getting delayed.

Due to these issues, the company backed out of their $2 billion acquisition of Vizio and even started looking to sell the piece of land they once bought from Yahoo. LeEco is part of a holdings company called Leshi Holding and until now, the founder and CEO of LeEco, Jia Yueting, was also the CEO of that publicly traded unit. Yesterday though, it was announced that Mr. Yueting would be stepping down as the CEO from Leshi Holding.

He will continue on as a chairman of the company, but Liang Jun will be stepping in as the new CEO of the company. Mr. Jun used to be an executive over at Lenovo but was hired by Leshi back in 2012. Jia Yueting apologized to investors and employees as he put the blame of Leshi’s development on a lack of focus. The company is putting their money on the new CEO in hopes that he will be able to step up and get things back on track.

This isn’t the only shakeup happening there though. The finance chief of Leshi had recently resigned due to personal reasons and it’s been confirmed that role will be filled by Zhang Wei. CNBC is even reporting that LeEco will be doing massive layoffs at their US branch today. This part has yet to be confirmed by an employee of LeEco, but the report claims up the staff will be cut back from over 500 to only 60.

Source: Reuters