On September 25, Chinese tutoring giant New Oriental held a press conference, declaring that it will completely review its existing projects offered to students, such as CET-4 and CET-6, the postgraduate entrance exams. , teacher certifications and other course offerings. Some projects will also be extended, such as computer review and forensic review.
This conference is the first public appearance of New Oriental President Yu Minhong after the launch of the “double reduction” policy. Regarding the transformation, Yu Minhong commented, âA lot of people think this is a transformation for New Oriental because university affairs are encouraged by politics, but in fact we think it is. resilience on our part. “
New Oriental started out as a company that offered a training service to students. Over the past 28 years, the educational service for middle school students has expanded from study abroad preparation for CET-4 and CET-6 exams and now to vocational training.
In 2020, New Oriental set up a university service division to integrate adult education into its business model. The division added adult study abroad exam training services, as well as career development course offerings.
At the press conference, Xu Shunkang, vice president of New Oriental and general manager of the group’s academic services division, said the company will upgrade all of its projects in the division, including the products and services offered. , monitoring of students and teachers, and integration of computer-assisted assessment.
On the day of the press conference, New Oriental’s financial report, delayed by nearly two months, was also released. As of May 31, New Oriental’s revenue for fiscal 2021 was $ 4.27 billion, an increase of 19.5% year-over-year. Its net profit was $ 230 million, down 35.18% year-over-year.
Its education services revenue for fiscal 2021 was $ 3.937 billion, or 92.1% of the company’s total revenue. Revenues from publishing and other services were $ 340 million, or 7.9%. As of May 31, New Oriental had 122 schools and 1,547 learning centers in 108 cities across China, primarily Beijing.
On September 24, LatePost announced that New Oriental will lay off 40,000 people and will soon close its business, which offers primary and secondary education. This is not the first large-scale layoff by New Oriental. On September 13, DFUB, a subsidiary of New Oriental, decided to shut down its grade 12 tutoring business.
SEE ALSO: New Oriental to lay off over 40,000 employees; Closure of primary and secondary school services
In response to the new policy for supervising off-campus training, New Oriental said in the report that it would stop providing tutoring services during public holidays, weekends and school vacations. The company would also close a number of learning centers and downsize to maintain operations.