According to the creator of New Oriental, 60,000 people were laid off as a result of China’s education crackdown.
According to its creator, China’s New Oriental laid off 60,000 employees and saw its operating income plummet by 80% when Beijing imposed new sweeping laws on the country’s private education business last year, prohibiting for-profit tutoring.
Yu Minhong, the company’s founder, released the numbers on his official WeChat account on Saturday, revealing how the July 2021 crackdown affected what was previously one of China’s largest private tutoring firms.
The operating profit decline was not given a time frame in the WeChat post.
According to its website, New Oriental employed 105,200 people, including 54,200 teachers, prior to the new laws.
In an effort to relieve pressure on children and parents, Chinese authorities outlawed for-profit tutoring in areas on the school curriculum last year, resulting in a wave of school closures and layoffs across the private education sector.
New Oriental, whose stock has plummeted by 90% since the guidelines were issued, has been attempting to diversify its operations into non-regulatory areas such as dancing and drawing lessons, as well as teaching Chinese to foreigners in abroad markets.
Yu has also led the company into live-streaming the sale of fruits and vegetables, and he has stated that the company intends to launch its own live-streaming e-commerce platform for farmers.
“In 2021, New Oriental had too many changes,” he wrote on WeChat.
($1 = 6.3736 )