ByteDance to cut jobs in education business and close some apps

TikTok owner ByteDance is set to reduce jobs in its education business and close some of its tutoring operations, Reuters reported.
TikTok technology focusChina last month issued rules barring curriculum-based tutoring for profit, aiming to ease financial pressures that have contributed to low birth rates but have left private education firms facing significant business impact.

ByteDance will lay off some teachers, sales and advertising staff in the education unit and will shut its curriculum-focused preschool and K12 tutoring businesses in China to be compliant with the regulations, according to one of the sources and a third source.

The closures include the shuttering of its one-on-one English online classes app Gogokid. On Thursday, the app was not available to be downloaded from Apple’s App Store in China.

ByteDance, whose hit products include short video apps TikTok and Douyin as well as news aggregator Toutiao, had hoped to find one of its next successes in education, making it one of its top priorities over the past year.

It established education unit Dali last October and runs several tutoring apps aimed at preschool kids and K12 students. The unit has more than 10,000 employees and its other products include school courses tutoring app Qingbei.

Other education companies such as U.S.-listed TAL Education Group, Gaotu Techedu, New Oriental Education & Technology Group have warned that they expect to face material adverse impacts on their after-school tutoring services.