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

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Continuing as chairman, Jia will focus on corporate governance, strategic planning, core product development, and improving efficiency of corporate decision-making, the filing said.

Jia Yueting, the legendary Chinese corporate leader, will step down as CEO of Leshi Internet Information & Technology Corp Beijing, the Shenzhen-listed arm of Jia's larger business empire LeEco, according to announcements from the company. 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.

Liang Jun, a Leshi vice president who joined the company five years ago from Lenovo, will take over the position from Jia Yueting. Jia told reporters on Sunday the firm needed the cuts to remove low-efficiency workers, especially from non-listed businesses.

Liang said the company will strengthen operations in TV sales, as well as enhance its capacity in video content production in the future. Apart from that, Jia says he will put more energy in the development of LeEco's vehicle business to accelerate innovation and bring its e-cars to the market.

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Cash-strapped LeEco is restructuring its business and moving to recover its financial position from a cash crunch and corporate overextension previous year. "There is no such thing as a fight for control", Liu Shuqing, a Sunac-appointed director on the board of Leshi, said at Leshi's press briefing on Sunday, according to a transcript seen by Reuters. According to the description of a former LeEco employee, Jia seems a combination of both. "But Jia's resignation means that there will be a clear differentiation between its listed video business and its unlisted businesses such as its electric auto unit", Zhang said.

Around 70% of the workforce will be laid off in its sports branches, as LeEco continues to struggle with financial problems, reported China Business Journal. "It is good news for investors as Sunac will pay attention to the operational stability of the listed companies", Shen said.

LeEco started off with a video streaming service similar to Netflix but quickly expanded to provide new products and services ranging from consumer electronics to cars. Last month, LeEco announced it had abandoned its plan to acquire U.S. television manufacturer Vizio Inc for $2 billion.

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