Chinese tech conglomerate LeEco is reshuffling the executive roster of its publicly traded unit, Leshi Internet Information and Technology Corp., as it continues to struggles with cash flow issues and a bumpy expansion into the U.S. Leshi disclosed in a Shenzhen Stock Exchange filing over the weekend that founder Jia Yueting will leave his role as CEO, but stay on as chairman.
Liang Jun, a Leshi vice president who joined the company five years ago from Lenovo, will take over the position. Leshi also said that its chief financial officer Yang Lijie is resigning for personal reasons and will be replaced by Zhang Wei, its China CFO.
Jia admitted in an interview with QQ.com last fall that LeEco is suffering from a cash crunch, management issues, and an overhasty expansion.
LeEco recently raised almost $2.2 billion from new investors including Tianjin Jiarui Huixin Corporate Management Company and Sunac China Holdings, but another major backer decided to cut its losses. China Bridge Capital sold more than 60 million shares of Leshi in the first quarter of 2017 as its founder Edward Zeng called for LeEco to find a new CEO and strengthen its management.
LeEco’s arrival in the U.S. was announced last year with an extravagant event that flaunted its extremely wide lineup of products including a video and music streaming, TVs, smartphones, VR headsets, bicycles, and an electric car, but it’s already hit several embarrassing high-profile setbacks.
Last month, LeEco not only abandoned its plans to acquire U.S.-based TV maker Vizio, but also nixed its video service EcoPass.
It’s also reportedly trying to sell it Silicon Valley property to raise funds and planning to cut a third of its U.S. jobs.
Source : TC