Jakarta –
China’s largest private education provider, New Oriental Education has laid off 60,000 employees. This is because of the impact of restrictions on tutoring efforts (tutoring) by the Beijing government.
New York-listed New Oriental was one of the victims of a rule announced last July that the Chinese government banned tutoring companies with a market value of $100 billion from teaching school curricula to generate profits or raise capital.
Regulators say excessive tutoring overwhelms children, strains parents’ finances and exacerbates social inequalities. Since the restrictions were announced, authorities have ordered the education business to suspend online and offline tutoring classes.
New Oriental famous for service tutoring after-school hours had more than 88,000 full-time employees, as well as about 17,000 contract teachers and staff as of May. It is not yet known whether contract workers were among the 60,000 laid off or not, which accounted for about two-thirds of the permanent staff last year.
In the past year the company has also spent nearly $3.1 billion returning prepaid tuition to customers, compensating laid-off employees and handing out leases for learning sites across the country.
Yu said revenue fell 80% and market cap shrank 90%. New Oriental loses about $28 billion in market value in 2021.
“The ban on private tutoring has shocked parents and made many businesses difficult. It has also triggered a sell-off of Chinese education companies in New York and Hong Kong,” said billionaire founder of New Oriental Education, Yu Minhong, as quoted by CNN, Tuesday (11/1/2022). ).
Continue to the next page about layoffs at tutoring.
– .
