Chinese Company New Oriental has fired 60,000 of its employees. According to a report by ‘Reuters’, the company’s founder has given this information. After implementing new laws regarding the private education industry in the country, there was a decrease of 80% in the company’s operating income. After this, the company fired employees on such a large scale.
New Oriental Founder Yu Minhong Said This
Yu Minhong, who started the company in 1993, published this data on his official WeChat account on Saturday. He has told how there was a considerable loss after the government’s decision of July 2021. New Oriental was once one of the largest private tutoring companies in China. However, it has not been disclosed in the WeChat post that this massive reduction in operating income was recorded during which period.
Such a decline in the number of employees
The company’s website served 105,200 employees, including 54,200 teachers, before implementing new rules in New Oriental.
The government had taken this big decision.
Last year, the Chinese authorities had banned private tuition for school students for profit. This decision was taken to give relief to the students and their parents. After this ban on private tutoring, many private schools were closed, and large-scale layoffs were seen in the private education sector.
In these efforts, the company has registered a decline of 90% in the market value of New Oriental since the implementation of the new rules. The company is now making efforts to increase its business in such sectors, on which the new rules have not affected in any way. These include dance and drawing classes and teaching Chinese to foreigners in foreign markets.