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New Oriental

Company

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Number of employees
2021 year
50000

History

2021: Dismissal of 60,000 employees amid government pressure

On January 10, 2022, it became known that the Chinese company New Oriental fired tens of thousands of employees during the previous year after Beijing introduced new large-scale rules in the field of private education, which banned commercial tutoring, according to its founder.

Yu Minhong, who founded the company in 1993 as chairman of the Chinese tutoring giant, posted data on his official WeChat account on January 8, which showed that due to restrictions, the company laid off 60 thousand employees in 2021, and revenue fell by 80% after the termination of all tutoring services. After the cuts, the company still employs about 50 thousand employees and teachers, Yu said in a separate post.

Chinese service for tutors New Oriental for 2021 laid off 60 thousand employees amid pressure from the authorities
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In 2021, New Oriental faced too many unforeseen events due to factors such as politics, the pandemic [coronavirus] and COVID-19 international relations, "wrote Yu. - Most of our business remains in a state of uncertainty.
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In 2021, New Oriental lost 90% of its market value. The combination of severance payments, reimbursement of the cost of training and terminated lease agreements for educational premises cost the company almost 20 billion yuan ($3.1 billion), Yu. Before the introduction of new rules, 105,200 employees worked at New Oriental, including 54,200 teachers.

In 2021, Chinese authorities banned commercial education in the subjects of the school curriculum in an attempt to ease pressure on children and parents, which led to a wave of school closures and layoffs in the private education sector.

New Oriental will seek to increase investment in college-oriented businesses and foreign Chinese markets while exploring new areas such as live broadcasts and agricultural sales. The search for a new direction will be in the spotlight in 2022, Yu said, adding that in January 2022 he took part in an hour-long live broadcast, during which almost 200 thousand books were sold.

Regulatory changes in educational technologies, reflecting a larger crackdown on Chinese Internet companies, have forced large players to adapt to survive, including by expanding non-academic training programs and providing some free extracurricular classes.[1]