Stock Groups

New Oriental laid off 60,000 staff after China’s education crackdown, founder says -Breaking

by Mike Robinson

[ad_1]

© Reuters. FILE PHOTO: General view of the headquarters of New Oriental Education & Technology in Beijing, China August 23, 2021. REUTERS/Tingshu Wang

BEIJING, (Reuters) – China’s New Oriental fired 60,000 workers and saw its operating income drop by 80% following Beijing’s strict new rules for the country’s private education sector. Beijing banned tutoring in profit last year.

Yu Minhong who established the company in 1993 published the numbers on Saturday on his WeChat profile. This disclosure showed that the crackdown of July 2021 had a devastating effect on what used to be one the largest tutoring companies in China.

WeChat didn’t specify any timeframe for the decline in operating profit.

According to New Oriental’s website, New Oriental employed 54,200 teachers and 105,200 other staff before the introduction of new regulations.

Chinese officials banned tutoring for profit in school subjects last year in order to relieve parents and children of pressure. This led to school closings and layoffs in the private sector.

New Oriental’s market value has dropped by almost 90% since rules were published. The company has attempted to shift to different sectors, such as dancing, drawing, and teaching Chinese to people in foreign markets.

Yu helped to sell fruits and vegetables through live streaming. Yu stated that the company is planning on setting up an e-commerce platform with live streaming for farmers.

He stated in his WeChat message that New Oriental was subject to too many changes for 2021.

($1 = 6.3736 )

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs are stocks, futures, indexes or Forex. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. Because prices might not reflect the market, they may be incorrect. This means that prices cannot be considered indicative and are inappropriate for trading. Fusion Media does not accept any liability for trade losses you may incur due to the use of these data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information. This includes data including charts and buy/sell signal signals. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.

[ad_2]