LeEco founder resigns as CEO of the company's main listed unit

LeEco founder resigns as CEO of the company's main listed unit

LeEco founder resigns as CEO of the company's main listed unit

The cuts to its USA business - which sells smartphones, TV sets and TV content - are part of a strategy to rein in overseas operations, trim costs and increase focus on the home market and core online content unit after founder Jia Yueting previous year said LeEco had grown too fast.

Acknowledging Sunac's influence in management, Jia Yueting told reporters yesterday at a press conference, "Management has been Leshi's weakness, while after Sunac's investment, its chairman Sun Hongbin has given Leshi great advice on how to improve company management". Meanwhile, Yang Lijie, LeEco's CFO, has also announced that he will be resigning, to be replaced by Zhang Wei. Vendors of various LeEco subsidiaries, such as its LeMobile unit, also filed lawsuits against the firm for unpaid bills.

Liang Jun, a Leshi vice president who joined the company five years ago from Lenovo, will take over the position from Jia Yueting. The activist fund was more concerned with Jia's expansion into electric cars than his handling of the LeShi streaming service.

The company started out as a video platform before rapidly expanding into producing consumer electronics such as smartphones, televisions and even an electric bicycle, and entering markets such as India and the US. Jia himself founded LeEco in 2004, and will stay on as both its Chairman and Chairman of LeShi.

Fok declined to comment on whether there could be a boardroom struggle between Leshi and its investor Sunac, but acknowledged that in every organisation, struggles and different points of view between the executive team are not uncommon especially when the company is facing difficulties.

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Most of LeEco's businesses are held privately by Jia and a number of investors.

"In the future, we hope LeEco is only formed of two parts: the listed businesses and the auto unit", a transcript of an interview with Jia provided by LeEco said.

"Sunac will have the financial control over Leshi and its core business". Local media reported that the company is preparing for over 1,000 jobs cut across its businesses.

Sun also stated that he was not seeking to gain control of Leshi, although he will play a role in managing the company's governance structure and management system. The previous year it made a 70 million yuan profit.

Leshi's shares have been suspended from trading since last month, pending detailed restructuring plans.

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