Denial of layoffs, denial of business contraction, denial of listing... VIPKid, China's edtech unicorn company, has denied many rumors over the past two years.
According to the Chinese media channel Sina Finance, VIPKid seems to be laying off employees, while preparing to go public and cutting off the secondary business tracks other than its main '1 to 1' online classes.
Another Chinese media outlet, Tech Planet, exclusively learned that the leading English education provider for children in China had officially launched its listing in April this year. The newly-appointed CMO, Zhao Yicheng, announced the company's preparations for listing to department employees on his first day at the office.
Among the adjustments to business segments, the large-size live broadcast class business 'Dami Online School' and 'Enlightenment English' were shut down in April with a shrinking mathematical education business. This has been followed by a wave of layoffs. Several VIPKid employees said that the layoffs this time are as high as 50%. Since April, the firm has laid off more than 500 employees. Entering May, the number of members fell below 7000.
VIPKid, a former star startup company, is experiencing major turmoil in personnel and business as it prepares to go public. In addition to layoffs and setbacks, many senior executives have left, one after another.