Chinese EdTech Giant Laid Off 60,000 After State Crackdown, Says Founder

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China’s New Oriental dismissed 60,000 staff and noticed working revenue plunge by 80 p.c after Beijing enforced new sweeping guidelines on the nation’s non-public training trade that barred for-profit tutoring final yr, based on its founder.

Yu Minhong, who based the corporate in 1993, printed the figures on his official WeChat account on Saturday in a disclosure that confirmed how the crackdown in July 2021 hit what was as soon as considered one of China’s largest non-public tutoring corporations.

The WeChat publish didn’t specify a time interval for the drop in working revenue.

Prior to the brand new guidelines, New Oriental had employed 105,200 employees together with 54,200 lecturers, based on its web site.

Chinese authorities final yr banned for-profit tutoring in topics on the college curriculum in an effort to ease stress on youngsters and fogeys, resulting in a wave of faculty closures and lay offs throughout the non-public training sector.

New Oriental, which has additionally seen its market worth sink by 90 p.c because the guidelines have been introduced, has been attempting to pivot its enterprise to different sectors that aren’t impacted by the laws, together with dancing and drawing courses and tutoring Chinese to foreigners in abroad markets.

Yu has additionally steered the corporate into promoting fruit and greens through reside streaming and stated the corporate plans to arrange its personal reside streaming e-commerce platform for farmers.

“New Oriental encountered too many changes in 2021,” he stated in his WeChat publish.

© Thomson Reuters 2021

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