Image source: open class bar official website

Mustard Duiwen On June 29th, the founder and CEO of Kaikai Bar, Fang Yechang, issued a letter to all staff, discussing issues such as layoffs, salary arrears, suspension of employee social security payments, slow refunds for students, and how the company will go on next. respond.

In the letter to all staff, Fang Yechang mentioned that due to the sudden changes in the international situation before and after the Spring Festival this year and the domestic epidemic situation, the vocational education industry, although the demand is strong, is also facing weak growth brought about by the decline in the purchasing power of students. The development has also come to an end, and it has officially entered a new stage of “cost reduction and efficiency improvement”, and has achieved obvious results.

However, due to the too large and too fast adjustment, the revenue and short-term layoff costs caused by team turmoil and public opinion increased sharply, and the current labor cost needs to be deferred for 1-3 months before it can gradually decrease (wages are paid the next month, commissions The monthly cash flow gap is about 100 million yuan each month during the adjustment period in the past few months. This is also the main reason for the late payment of employees’ wages and the delay of some students’ refunds.

Regarding the “interruption” of social security this month, Fang Yechang said that a few days ago, a company account was suddenly blocked, so firstly, all employees were transferred out and distributed to different subsidiaries of the company to reduce risks. The main body will be resumed one after another today and tomorrow. This month, the social security has handed in the personal part a few days ago, and the company part has applied for late submission but will not be interrupted.

In addition, Fang Yechang said that the key to solving the company’s current predicament is money, “and what I have to do is to find money for the company as much as possible! There are two ways to find money, one is to borrow money quickly, and the other is to raise money slowly.” Starting from August 2021, he has borrowed more than 1 billion yuan through personal credit loans, personal investment mortgages and personal asset mortgages. He personally lent this money to Kaiba 400 million yuan, and personally repurchased the company’s early shareholders to The old stock is about 400 million yuan and the related interest is about 200 million yuan.

In addition, he also mentioned that in the past few months, he has contacted more than 10 founders of leading companies in the same industry and related industries. Rather deep.

For future planning, Fang Yechang said that only the product and delivery team, channel business team, content operation team and production and research support team will be retained, and the total team size will be controlled within 1,000 people. In the next three months, we cannot guarantee that the salaries of the remaining employees will be paid in full and on time, but we will do our best to ensure everyone’s basic living. For employees who are not suitable for the new position or who do not have confidence in the company, the arrears will be gradually distributed in batches.

The following is the full text of the internal letter:

Source: Mustard Pile

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