Jia Yueting, the co-founder of LeEco, has resigned as the head of Leshi Internet Information and Technology Corporation. Leshi is one of the crown jewels of the LeEco group, with a Netflix-like video streaming service serving as the subsidiary's main business. While the exact reason for his departure was not specifically stated, the resignation comes at a time when LeEco is dealing with the aftermath of last year's financial troubles. To replace Jia as the CEO of Leshi is Liang Jun, a former Lenovo executive who joined the company in 2012. Aside from Jia, Leshi's Yang Lijie will also resign as the company's chief financial officer due to personal reasons. Replacing Yang as Leshi's CFO is Zhang Wei, who is currently the streaming service's China CFO.
Despite his resignation as the chief executive officer of Leshi, Jia will stay on as the chairman of the company. As the chairman, he will focus on matters of corporate governance, strategic planning, and core product innovation. His resignation as a chief executive will allow him to spend more time analyzing corporate matters and strategy rather than dealing with Leshi's daily operations. This could mean good news for the company that is embattled with financial problems, with the Jia's new focus on strategy and product innovation could open up new revenue streams and regain solid financial footing.
LeEco, Leshi's parent company, has faced financial trouble after its CEO admitted that the company over-expanded. In a corporate letter from Jia Yueting to his employees, he noted that the company's biggest problem was its aggressive expansion despite the limited resources and capital to finance these new ventures. To improve its financial situation, the company retrenched a substantial portion of its staff in China and the United States, canceled its acquisition of the television manufacturer Vizio, and liquidated its Silicon Valley property originally meant for its US headquarters. LeEco has also secured funding to stabilize the balance sheets of its subsidiaries. The company still plans to expand its business overseas, but it is expected to take a more disciplined approach. For example, LeEco has decided to redirect its focus in the Indian market from smartphones to smart TVs as the company expects that smart TVs will grow rapidly in the said country within the next few years.