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Education

Chinese cram schools New Oriental and TAL rack up $1bn in losses

Operators pull out of academic tutoring services amid Beijing crackdown

New Oriental's Beijing headquarters: The company is pivoting toward livestream sales of agricultural products amid the regulatory crackdown on tutoring services.   © Reuters

HONG KONG -- Beijing's clampdown on China's education sector has hit the bottom line of after-school tutorial companies as two leading New York-listed businesses reported big losses Tuesday.

Amid Beijing's move to restrict after-school teaching in core subjects to nonprofit operators, New Oriental Education & Technology Group recorded a net loss of $908 million for the six months ended November, compared with a net profit of $228.6 million over the same period in 2020.

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