Why do you see layoffs in online education institutions?
In fact, layoffs are not just beginning. When there was no hope of resuming classes offline last spring, many institutions began to reduce salaries and lay off employees.
In fact, the layoffs we saw this time are mainly due to policy reasons. Take who to learn from as an example. If pre-school training in mathematics and English is not allowed now, the department that used to do this project will definitely be laid off, followed by layoffs, and the greater the investment, the more people will be laid off. Coupled with the current policy restrictions on publicity, it has indeed caused difficulties in enrollment, increased operating costs, declining performance and rising costs. In the absence of a particularly good open source method, interception must be considered first. This is a choice that all industries will make.
Online education industry reshuffle period?
1. Starting from the online institutions themselves, online institutions are weaker than offline institutions in solving students' learning needs, so the demand is weak, so it will become more and more difficult to recruit students after removing the mystery of online.
2. From the policy point of view, almost all the enrollment methods available to online institutions are banned, and the real needs of students who are suitable for online learning are also banned, which makes the course products of online institutions lack pertinence, and enrollment is very difficult, and the operating costs will be very high.
3. Funds will be greatly influenced by policies. Many online organizations are actually losing money and rely entirely on capital investment to operate. Once the capital is no longer invested, layoffs are only the beginning.
So I think the online school is likely to be a flash in the pan, unless there is good news behind it. (Remarks: The three-child policy is not good for training institutions, and the reason why young people are afraid to have children is not a policy issue. )