[Epoch Times November 08, 2021](Epoch Times reporter Liu Yi comprehensive report) Under the pressure of the government’s “double reduction” policy, the mainland education and training industry New Oriental Education Technology Group Co., Ltd. (New Oriental) is facing bankruptcy of 1,500 teaching sites. The renovation of these teaching sites cost nearly six to seven billion yuan, and New Oriental also donated 73,000 sets of new tables and chairs to schools across the country.
On November 5th, the New Oriental Public Account published an article “Being a Red Truck, Driving Far Away”, which revealed that up to now, Zhengzhou, Xi’an, Hefei, Chengdu, Yichang, Foshan, Lanzhou, Lianyungang, Wuhan, Urumqi New Oriental branch schools such as Taiyuan, Taiyuan and Haikou donated a total of 73,366 sets of new tables and chairs.
Principal Wu of Xiangyang Primary School in Suixian County, Henan Province, who received the tables and chairs, said: “That’s a big difference from before. When children see these things, they are in a good mood.”
Principal Wu explained: “We equipped a set of desks and chairs last year. You see, it has been less than a year now, and many of them are broken. The children are very skinny. The table was moved, and the screws on it fell off. The entire table is down. This new table is strong and heavy, and it won’t be moved badly.”
The reason why New Oriental donated these new tables and chairs was mainly because the company’s teaching center was closed. According to Caixin.com’s news on November 8, Yu Minhong revealed in his personal live broadcast on November 7: “New Oriental’s nearly 1,500 teaching points have to be rented out. The renovation of New Oriental alone cost six to seven billion. All cancellations, liquidated damages, deposits, plus the refund of student tuition, and the refund of staff and teacher resignation costs are really a huge sum of money.”
Since the Chinese Communist Party introduced the “double reduction” policy (to reduce the burden on students in compulsory education and the burden of off-campus training), on October 13, the parent company of New Oriental announced that local schools would divest their primary and middle school (K9) businesses; October 25 , New Oriental Online announced that it will cease to operate K9 academic off-campus training services in Mainland China, and the termination is expected to take effect before the end of November 2021.
In September, New Oriental also shut down Oriental Youbo, a wholly-owned subsidiary of New Oriental Online, and initiated refunds for trainees and compensation for employee redundancy. The scale of related refunds will reach 70,000.
As of May 31, New Oriental had 122 schools, 1,547 learning centers, and 11 bookstores in the mainland; a total of 54,200 teachers were employed, most of which were full-time teachers. With the divestiture of the core business, a large number of schools have been rented out and teachers have been dismissed.
In addition, according to the news of “China Fund News” on November 8, on September 17, the latest layoff plan was disclosed at the internal executive meeting of New Oriental. Yu Minhong said that the original plan was to lay off 40,000 employees by the end of August, but as of 9 Less than 10,000 people were laid off in the middle of the month. An executive who participated in the meeting said that by the end of the year, the number of layoffs will exceed 40,000.
New Oriental’s donation of tables and chairs was praised by mainland netizens. Some netizens left a message: I’m soaking in the rain and thinking about holding an umbrella for others.
Some netizens also said: How much dignity is reserved for themselves when they leave the field, and how much applause they can reap when they return.
Under the suppression of the CCP, the mainland education and training industry has been hit hard. In addition to the company’s stock price plummeting, its founder’s value has also shrunk significantly. According to the “2021 Hurun Rich List” released by the Hurun Research Institute on October 27, the industry with the largest decline in wealth this year is off-campus training institutions. Fortunately, 40-year-old Zhang Bangxin dropped 94% (nearly 900 Billion yuan) to 5.7 billion yuan. New Oriental Yu Minhong’s wealth shrank from 26 billion yuan last year to 7.5 billion yuan, and Gaotu Education Chen Xiangdong dropped from 80 billion yuan last year to this year’s list.
Yu Minhong reposted the article in Moments on the 8th and left a message stating that the era of education and training is over.
Editor in charge: Fang Ming