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China Daily Website

New Oriental Education to cut over 1,000 jobs

Updated: 2013-01-31 15:43
By Li Woke ( chinadaily.com.cn)

New Oriental Education & Technology Group Inc will cut more than 1,000 jobs and shut down at least 15 schools, a company executive said on Wednesday.

"The company will close 15 to 25 unprofitable teaching centers and will lay off 1,000 to 1,500 employees in the next four months. The average severance cost will be $6,000 to $10,000 per person," said Louis Hsieh, the CFO of New Oriental Education, in a conference call.

On Tuesday, the Beijing-based private education provider posted a second-quarter loss of $26.9 million, compared to a $3.2 million loss in the same period of the previous fiscal year.

The New York-listed Chinese company attributed the loss in the second quarter, which ended in November, to increased investment to open new schools.

Related reading:

New Oriental Education posts $26.9m Q2 loss

 
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