The revelation underscores the widespread disruption wrought by Beijing’s unprecedented decision last summer to outlaw profits in swathes of the after-school education industry – upending a market estimated at US$100 billion at its peak. The three biggest operators in the space – including New Oriental and TAL Education Group – together once employed more than 170,000 but total numbers are estimated in the millions given the hundreds of private firms that vied for students in a fragmented and under-regulated arena.
New Oriental Education & Technology Group Inc. fired tens of thousands of employees, the biggest layoffs disclosed since China embarked on a wide-ranging crackdown on private enterprises more than a year ago.
Yu Minhong, founder and chairman of the Chinese tutoring giant, revealed in a WeChat post over the weekend that the company dismissed 60,000 workers in 2021 and saw revenue fall 80% after ending all K-9 tutoring services following Beijing’s overhaul of the US$100 billion after-school education sector last July. That’s nearly three-quarters of its more than 81,000 employees as of May.
