EdTech Bubble Bursting? Vedantu Fires Another 100 Full-Time Employees; Total 625 Employees Fired
The Indian online tutoring company Vedantu has gone wild on its round of conducting layoffs in the ongoing year, firing another set of employees in bulk recently.
According to sources privy to the matter, the edtech unicorn company has fired 100 more employees recently, marking its third round of layoffs since May 2022.
Edtech Unicorn Vedantu Fires 100 Employees More
As the world moves towards the pre-pandemic normal with schools and educational institutions reopening at 100% capacities, the demand for edtech companies are inching lower.
As many as 6,000 employees of different edtech companies in India have been fired since the start of 2022, including the top unicorn edtechs like Unacademy and Vedantu.
Speaking of Vedantu, the company has reportedly laid off an additional 100 employees over July 2022, marking its third round of layoffs since May 2022, as per a Moneycontrol report.
These employees were in permanent roles in the company handling the sales and training teams. They will be given a two-month salary as severance, stated sources.
In May 2022, the Bengaluru-headquartered unicorn laid off 624 employees, including contractual educators as well as permanent employees, which made up about 10% of its workforce.
Regarding this, the company’s co-founder and CEO Vamsi Krishna said that the company has been estimating a scarcity of funds in the coming quarters, in an unpleasant environment given the slump in financial markets globally.
“Currently, the external environment is tough. War in Europe, impending recession fears, and Fed rate interest hikes have led to inflationary pressures with massive correction in stocks globally and in India as well.
Given this environment, capital will be scarce for upcoming quarters.
With Covid tailwinds receding, schools and offline models opening up, the hyper-growth of 9X, Vedantu experienced during the last 2 years will also get moderated. For long term sustenance of the mission, V would need to adapt too,” Krishna said in a blog.