The billionnaire owner of Chinese tech company LeEco announced that his business had ground to a halt. That is why Jia Yueting has decided to lower his salary to a record level.
The corporation operates in the innovative technology field, manufacturing a wide range of products – from smartphones to elecromobiles.
In a long letter to his employees, Yueting apologises to the shareholders of his company, pointing out his intention of restricting his own income to 1 yuan, or 15 cents.
He also insists that the overly aggressive fast expansion company strategy be abandoned and that growth should occur at a more normal tempo.
LeEco is the mother company of a huge empire, which, along with electronics manufacture, also includes ownership of TV-channels and sports media.
The daring plans of the top executives include building an electromobiles plant in Nevada and plan the takeover of Vizio, the television sets and electronics producer, for $2 billion.
“No company can have the experience to operate on 2 different poles simultaneously. We rushed forward blindly. Our global strategy is quite comprehensive, but our resources are rather resricted.”, says Yueting in his letter, quoted by Bloomberg.
The LeEco founder made his fortune on his own, starting out as an IT specialist in the local taxation office. In 2004, he launched one of China’s first videostreaming platforms, Leshi Internet Information & Technology. His company entered the smartphones market in 2015.