Jia Yueting, the founder of LeEco, will step down as CEO of the company, but will retain the position of chairman.
Jia resignation was announced Sunday in a stock exchange filing, Reuters reported. Jia will retain his position as chairman, according to the filing, which also indicated the company's chief financial officer would be replaced.
Liang Jun, current vice general manager of LeTV, will take over as CEO.
Jia said at a press conference that he and other decision-makers agreed that LeTV had entered a quasi-mature stage. With this rapid development, the company now has to handle more businesses. Last year, LeTV experienced operation problems: through this structural adjustment, a stronger management team will lead LeTV to a better future, Jia said.
Last week, China Business Journal reported that LeEco is ready to roll out massive layoffs, including a 70% cut in its sports branches, as it continues to struggle with financial problems.
Meanwhile, the company has tried to make a big splash with its debut in the US. It announced its deal to buy Vizio in July, and in October, the company debuted a smart TV, phone and self-driving car, as well as services to run on and connect to its devices.
But by November, reports surfaced the company was tightening its belt. Later that month, Chinese regulators announced there would be heightened scrutiny of Chinese capital leaving the country for foreign investments.