Tech Industry

LeEco CEO steps down in troubled times for China's tech giant

Jia Yueting's resignation comes a month after a $2 billion deal for Vizio fell through.

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Jia Yueting has stepped down as LeEco's chief executive.

Stoyan Vassev/TASS

The chief executive of Chinese tech giant LeEco has stepped down a month after the company scrapped a $2 billion bid to buy US TV manufacturer Vizio.

Jia Yueting's 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 as well.

LeEco 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 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.

In April, LeEco employees told Bloomberg the company was five days late paying its US employees and that the Vizio deal was stalled. A week later, LeEco and Vizio said their tie-up wouldn't happen, blaming "regulatory headwinds" for the deal's demise.