China top education company sacks 60,000 staff
China’s biggest private education provider, New Oriental Education laid off 60,000 employees last year as it grappled with fallout from Beijing’s sweeping overhaul of the industry.
Billionaire founder of education company, Yu Minhong made this known in a post on his WeChat account last weekend.
He said the company encountered “too many changes in 2021.”
He blamed the layoffs on “policies, the pandemic and international relations.”
Yu’s post lays out starkly the consequences for private enterprise in China as the Chinese government took major steps to curb what it saw as unruly business practices.
Yu’s company was one of the most high-profile casualties of the widespread restrictions imposed on the country’s $120 billion private tutoring sector, as it reeled from rules announced in July that banned for-profit, after-school tutoring services and restricted such companies from making profits or raising capital.
Regulators said at the time that excessive tutoring had overwhelmed children and placed too much of a financial burden on parents, all while exacerbating social inequality.
Since those restrictions were announced, authorities have ordered those education businesses to suspend online and offline tutoring classes.
New Oriental, famous for its after-school tutoring services, had more than 88,000 full-time employees and about 17,000 contract teachers and staff as of May, according to its latest annual report.