(Yicai Global) May 17 -- VipKid has acknowledged large layoffs but denies a report that as many as half of the staff in some departments were let go, online news outlet The Paper reported today, citing the Chinese online educator. The personnel changes were in line with normal business adjustments and were made to focus more on core business development, it added.

Beijing-based VipKid has sacked up to 50 percent of staff in some divisions as it prepares to go public, tech media 36Kr reported earlier today. In addition, last month it halted investment in its sub-brand Dami Wangxiao, which provides live-streaming courses designed for students from kindergarten to 12th grade, focusing on English and Maths, it said.

A number of senior executives did resign, but this was mostly last year during the epidemic, and they were normal staff changes, The Paper reported. The number of employees at the e-educator has fallen to under 7,000 in May from 12,000 in 2019, it added.

VipKid is most known for its online education model that offers one-to-one tutoring and pairs students with teachers from North America. At present the company has 70,000 foreign tutors in the US and over 800,000 paying students.

Operator Beijing Dami Technology has held nine fundraising rounds since the company was set up in 2013. The most recent was Series E in October 2019 when it secured USD150 million led by internet giant Tencent Holdings. Its largest shareholder is founder and Chief Executive Officer Mi Wenjuan with a 35.62 percent stake.

Editor: Kim Taylor