Chinese internet conglomerate LeEco is reportedly “running out of cash”. LeEco had seen large scale business diversification, ranging from cars to smartphones, within a short span and Chinese billionaire CEO Jia Yueting has now admitted that the company do not have enough cash to “sustain its headlong rush”, according to a report by Bloomberg.
Yueting announced that he would cut his salary to 1 Yuan or Rs 10 while apologising to shareholders in a lengthy letter to employees. He also promised to slowdown LeEco’s expansion and “move the company toward a more moderate phase of growth.”
“We blindly sped ahead, and our cash demand ballooned. We got over-extended in our global strategy. At the same time, our capital and resources were in fact limited. No company has had such an experience, a simultaneous time in ice and fire,” Yueting’s wrote in the letter published by Bloomberg.
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