Chinese education agency cuts 60,000 employees in crackdown – Times of India

HONG KONG: New Oriental Education, China’s largest private education provider, laid off 60,000 workers after a crackdown in Beijing last year.

Yu Minhong, the billionaire founder of the top educational institution, confirmed the massive shake in a post on his WeChat account over the weekend after falling from a massive overhaul of Beijing’s industry, CNN reported.

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U says the company “has undergone a lot of changes in 2021.” He blamed “policy, epidemics and international relations” for the cuts. New Oriental, famous for its after-school tutoring services, had 88,000 full-time employees and about 17,000 contract teachers and staff as of May, according to its latest annual report.

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It is not clear if there were contract workers among the 60,000 workers who left, but that number accounted for about two-thirds of New Oriental’s full-time workers last year.

In another post late Monday, Yu clarified that the company still has about 50,000 teachers and staff after the layoffs.

According to CNN, the U.S. post clearly highlights the consequences of private enterprise in China, as Beijing has taken major steps to curb what it saw as irregular business practices.

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New York-listed Oriental – China’s largest private educational institution by market capitalization – is one of the most high-profile casualties of the massive restrictions imposed on the country’s 120 billion private tutoring sector, as it deviates from rules announced in July that were banned for profit. Restricts post-school tutoring services and such organizations to increase profits.

Regulators said at the time that excessive tutoring had overwhelmed children and placed a much greater financial burden on parents, adding to social inequality.

Authorities have instructed education businesses to suspend online and offline tutoring classes since the bans were announced, CNN reported.

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The ban on private tutoring has shocked parents and left many businesses struggling. This triggered a sharp sell-off of Chinese educational institutions in New York and Hong Kong: In late July, Goldman Sachs estimated that the regulations removed $ 77 billion from the market value of foreign-listed Chinese tutoring companies in one week.

It is unknown at this time what he will do after leaving the post. Former education official Wang Wenzhan said last July, however, that there are about one million institutions in the country that focus on post-school tutoring, employing about 10 million people.

In December, the Ministry of Education announced that authorities had closed 84 percent of the country’s online and offline after-school tutoring institutions, CNN reported.

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But policymakers are clearly concerned about rising unemployment, as massive job losses could lead to unrest and instability.

Meanwhile, TAL Education (TAL), another Chinese tutoring giant, announced in November that it would shift its focus from teaching kindergarten to ninth grade school curriculum and instead teach other subjects such as music and sports. According to CNN, it wants to expand its activities abroad.

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