The spate of mass layoffs continues across companies, with EdTech firm Vedantu Innovation Pvt Ltd joining the list. The firm has laid off 385 employees or 11.6 per cent of its workforce, as per reports. After the layoffs, Vedantu’s workforce stands at 3,300. The Bengaluru-based company has laid off workers for the third time this year as the EdTech sector grapples with faltering investment sentiment, decreasing valuations and fewer funding rounds. As per a report in Mint, the employees will be given severance pay and placement opportunities to the affected workers. As Vedantu prioritises profitability over growth, the founding team, including CXOs, has taken a 50 per cent cut in their pay as part of cost-cutting measures.
Vedantu’s layoffs this year:
In May, the company sacked 624 employees. In August, 100 more people were let go. In the third and most recent round of layoffs, 385 people from sectors like sales, human resources and learning content verticals were laid off, bringing the total workforce, including contractual employees down from 5,600 to 3,300.
The Tiger Global-backed firm is not the only one to have reduced its workforce. Rival EdTech firm Unacademy laid off 350 employees or 10 per cent of its workforce in November. Furthermore, Byju is also set to sack about 5 per cent of its workforce as part of an “optimisation plan”. Other EdTech companies that have given pink slips to their employees are Eruditus, SuperLearn, LEAD, Frontrow and Toppr.
Indian EdTech startups are struggling to maintain their profitability and have laid off over 7,000 workers since the pandemic eased. The companies are also facing a capital crunch with the return of physical classes.
Vedantu
Established in 2011, the EdTech startup became a unicorn in September 2021 when it raised $100 million in its Series E funding, led by Singapore-based impact investors ABC World Asia and Tiger Global. The funding was set to be used for improving product engineering functions, and expansion and to compete with other players in the EdTech sector like Byju’s upGrad and more.
In October this year, Vedantu bought a majority stake in Deeksha (Ace Creative Learning). The test preparation platform was acquired for $40 million.
