Employees layoff for edtech companies
English tutoring is a huge market with enormous potential in China, which tempts thousands of investors to dig in, looking to rack up huge profits. However, taking a serious look at the market trend, it’s not exactly going where it’s supposed to. The online education platform Gogokid, which is backed by Bytedance, is planning a round of employee redundancy with 70% of sales people to be slashed. Another edtech firm AiKID, also supported by Bytedance, has reportedly suspended the business for months. The two struggling cases exemplify the fact that this lucrative industry incurs high user acquisition costs, which can be a barrier for a quick profit return.