Online tutor Gaotu posted revenue of 725 million yuan (US$110 million) in Q1, down 62.7 percent. The net profit reached 53.7 million yuan, while the net loss in the same period last year was 1.4 billion yuan.
Following restructuring and mass layoffs, Gaotu’s labor costs have decreased. Operating expenses in Q1 were 486 million yuan, down 83.1 percent.
CEO CHEN Xiangdong said that the company is to develop adult education, vocational and competence-oriented education and intelligent digital products.