For past customers who have already applied for courses, VIPKid will guarantee the normal fulfillment of the contract, while students outside China and related international businesses will not be affected.
The Tencent-backed Chinese online tutoring firm, VIPKid, officially stated in a letter that an adjustment had been made in accordance with the 'double reduction' policy and the requirements of relevant departments. From August 7, no new sales of foreign-based courses will be made.
China last month issued rules barring curriculum-based tutoring for profit, aiming to ease financial pressure that has often forced parents to not have more than one child – the measures have also left private education firms facing significant business impact.
The recently announced double reduction policy stipulates that foreign recruits should comply with relevant national regulations; it is alsostrictly forbidden to hire foreigners residing abroad to carry out training activities.
Since then most online and offline education and training institutions, including New Oriental, TAL and Gaotu, have begun making corresponding business and personnel adjustments. Prior to this, ByteDance's education sector had seen undergone substantial layoffs, with plans to abolish more than 50% of the experienced class tutors by the end of August. VIPKid has not explained the impact of the 'double reduction' policy on its personnel this time.