Online education firm Hujiang has laid off an unconfirmed number of employees amid other cost-cutting measures as it adjusts to tumultuous conditions in the capital market.

Rumors about massive layoffs first appeared on Chinese professional networking service Maimai over the weekend and began to circulate online (in Chinese) more widely on Wednesday. Around 1,000 employees were allegedly downsized across business units and corporate functions.

Maimai users added that its management team would also leave due to an unmet condition from a prior “bet-on agreement” or value adjustment mechanism, a common practice in Chinese private equity world where investors are entitled to an agreed-upon action, usually the right to adjust value, if a certain condition is met.

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Jill Shen

Jill Shen is Shanghai-based technology reporter. She covers Chinese mobility, autonomous vehicles, and electric cars. Connect with her via e-mail: jill.shen@technode.com or Twitter: @yushan_shen