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szdaily -> Shenzhen -> 
Parents worried as online English platform lays off employees
    2021-08-20  08:53    Shenzhen Daily

SHENZHEN-BASED English education provider Acadsoc.com.cn was reported recently to have laid off its employees and delayed their salary payments.

A reporter with Southern Metropolis Daily visited the company’s Shenzhen office Monday and was told by one employee that around 70 percent of the employees, most from the firm’s sales department, were forced to resign from their positions.

Many employees were found gathering at the office during the reporter’s visit Monday. Some of them received the layoff notice at the end of July while others were informed Saturday.

Although the company promised to offer compensation to affected employees Aug. 11, the money didn’t arrive in their bank accounts as promised, said employees.

It is said that laid-off employees have applied for arbitration but have to wait some time for the result to come out.

In addition to employees, those who bought lesson packages from Acadsoc have also been swept into the vortex of the company’s crisis.

Many parents told the reporter Monday that they could neither book lessons on the platform nor get through its service hotline. Online service was not available. Some tried to get a refund but also failed.

The reporter also failed to get in touch with the company’s service agents both by phone and online channels.

“I don’t know what will happen next. I just want to book lessons as many as possible before it is closed,” said a woman surnamed Fu.

Another man surnamed Xiao who just purchased 800 lessons from the platform said that it is better for his kid to attend up to two classes each day as longer class times do little to help his kid learn new knowledge and would be harmful to the kid’s eyesight. “If the institute finally goes out of business, I would treat it as an investment failure,” said Xiao.

A parent complained about the case via hotline 12315 and was told that Acadsoc.com.cn wasn’t approved by the provincial education authority, said the report.

Acadsoc released a letter to its customers Tuesday afternoon on its official WeChat account, saying that the company is still in normal operation and the move to lay off employees is to downsize company structure.

In the letter, Acadsoc also promised to extend one month for all packages to handle the growing demand for lessons. All refund requests have been registered and will be dealt with. The company also said it is developing new courses in line with current policies.

According to the latest notice issued by the national authority to further alleviate academic burden, tutoring agencies are not allowed to hire foreign nationals living abroad to conduct training activities. However, an online service agent with Acadsoc told the reporter that the lessons are delivered by foreign teachers living abroad.

One staffer with the Guangdong Provincial Education Department was quoted by the Daily report as saying that they will follow up the case and work out plans based on the firm’s situation.

Acadsoc was founded in 2011 and offers one-on-one language classes with American, European and Filipino teachers. As of now, it has 16,000 employees around the globe.

Acadsoc raised nearly 1 billion yuan (US$154 million) in the third round of financing so far, according to information published on the firm’s official website. (Wang Jingli)

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