Complaints are mounting against Gaotu Techedu Inc. as consumers report persistent sales calls at late hours, with some saying they receive multiple calls daily despite never having enrolled in any courses. Users have taken to social media to express frustration over what they describe as "harassing sales tactics," noting that calls continue even after explicitly declining the company's offerings.
According to employees, these after-hours calls are driven by stringent performance requirements. Staff members reveal that the company mandates a minimum of 65 calls per day with at least 100 minutes of talk time, and those failing to meet performance metrics risk having their customer leads reduced. Employees who consistently underperform face disciplinary talks and potential dismissal, with some noting that more than half of all positions at the company carry a sales component.
This aggressive sales campaign stands in stark contrast to the company's financial performance. The founder and CEO set an ambitious cash revenue target of 10 billion yuan at a February all-hands meeting, yet first-half results for 2026 showed only 3.685 billion yuan in cash revenue, achieving just one-third of the stated goal. Meanwhile, consumer complaints continue to accumulate on platforms, with nearly 3,000 complaints related to phone harassment, refund issues, and misleading promotions.
Employees describe a high-pressure environment where calling customers before 10:30 PM is considered normal working hours, since evening hours yield the highest parent response rates. One former employee notes that making calls after 10:30 PM was sometimes necessary to meet daily quotas, even though the company officially prohibits it and such calls may draw complaints. The pressure is compounded by a forced ranking system where the bottom 30% of performers face termination or forced resignation after three consecutive months of poor results.
Commission structures add further pressure, with performance bonuses typically accounting for more than half of total compensation. Positions marketed as academic support roles often function primarily as sales positions, particularly during peak enrollment seasons when temporary staff handle the actual teaching support duties. Customer lead distribution is directly tied to conversion rates, creating a cycle where lower-performing employees receive fewer leads and must work even harder to meet targets.
The company's financial struggles reveal a pattern of revenue growth accompanied by persistent losses. Annual losses have accumulated to nearly 1.4 billion yuan over two years, and while first-quarter profits appeared in 2026, they plummeted by nearly 70 percent year-over-year before the second quarter returned to losses. The stock price has fallen more than 40 percent over the past 250 days, reflecting investor concerns about the company's trajectory.
Achieving the CEO's goal would require generating approximately 6.315 billion yuan in cash revenue during the second half of the year, an ambitious target given the challenges of selling online courses in a market where many parents prefer offline learning options with local instructors. Notably, the CEO's tone has shifted in recent earnings calls, emphasizing "high-quality growth" over scale, while strategic leaders acknowledge a more cautious approach to offline expansion.
The company is simultaneously investing heavily in artificial intelligence integration and offline presence expansion. The AI strategy requires substantial research and development investment, though it has yet to emerge as an independent revenue source and currently serves primarily as an efficiency tool for existing offerings. Offline operations now span nearly 30 cities with nine major campuses and two flagship centers, but these ventures carry significant fixed costs that must be supported by cash flow from the traditional online course business until they achieve profitability.
The aggressive approach has also attracted regulatory scrutiny. Since 2024, the company and its affiliates have faced at least ten administrative penalties or official notifications related to unlicensed operations, disguised academic training, and improper personal information collection. Recent actions include a suspension order for operating without proper licensing and a joint regulatory notification regarding unauthorized collection and use of personal information through one of its applications. Legal experts warn that using contact lists obtained through illegal channels could expose responsible parties to criminal liability. The situation underscores the delicate balance the company must strike between pursuing aggressive growth targets and maintaining compliance with consumer protection and educational regulations.
As pressure mounts from both consumers and regulators, the gap between the company's stated ambitions and its actual performance continues to widen, leaving questions about whether the aggressive sales strategy can realistically deliver the promised results without further damaging its reputation and legal standing.