Rumours began to circulate online over the weekend that Hujiang, a leading Shanghai-based online education site, had fired 95% of its staff in what was called a failed valuation adjustment mechanism”.
In response, Hujiang issued a denial on Wednesday. Although it did admit that there were some job cuts, it said not only that the scale had been greatly exaggerated but also that the company remained on course to IPO.
The response calmed some doubters, but it remains a concern that Hujiang has remained loss-making since 2015.
Capital keeps pouring into the education sector, but it appears harder for education companies...