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60,000 staff cut as China's New Oriental Education pivots business

Company statement calls chairman's financial disclosures 'not authorized'

 New Oriental Education & Technology Group has had to shutter many of its tutoring centers due to Beijing's crackdown on the sector.   © Reuters

HONG KONG -- High-profile Chinese tutoring company New Oriental Education & Technology cut about 60% of its 105,200 staff members last year, Chairman Yu Minhong has disclosed, as the group pivoted toward livestream sales and other new businesses amid a regulatory crackdown.

Yu, a co-founder of company, said in a social media post on Saturday that revenues at New Oriental plunged 80% last year as it shut down most of its tutoring centers after the government moved to restrict after-school teaching in core subjects to nonprofit operators. Yu put the cost of restructuring the New York-listed company and refunding prepaid tutoring fees at 20 billion yuan ($3.13 billion).

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