Vedantu lays off another 100 employees after sacking 624 in May
Two persons with knowledge of the layoffs confirmed that Vedantu terminated another 100 full-time employees from its sales teams last month as part of a reorganization effort. At the unicorn edtech company in Bengaluru, which laid off about 624 full-time and contract workers in two groups in May, this is the third round of layoffs.
Interestingly, in a memo to staff on May 18, co-founder and CEO Vamsi Krishna stated that no further layoffs were anticipated because the prior downsizing exercise was a “one-time action.” The memo was additionally posted on the business blog. He had cited approaching recession fears and global macro headwinds as the main causes of the layoffs. “Right now, the outside world is difficult.
The Covid-19 tailwinds are fading, schools are opening, and offline business models are becoming more viable, therefore Vedantu’s nine-fold hypergrowth over the previous two years will likewise slow down. V would also need to change if the mission was to be sustained over the long run, he had warned. Krishna stated that the company was attempting to create a runway for 30 months through the layoffs, concentrate on lowering the cost of client acquisition, and align all teams and projects around its primary focus area.
On April 7, it announced that Unacademy, a rival edtech unicorn, had fired some 1,000 staff members, both on-roll and contractual, from its core services and subsidiaries like PrepLadder. Over 10,000 people have been let go from Indian businesses this year as investors pressure entrepreneurs to prepare for a funding winter. As the market for online education dwindles, offline learning has created a difficult situation for Indian edtech companies.
Byju’s and Unacademy, Indian edtech majors have taken the fight offline as they continue to jostle for market share with traditional tutoring firms. following the strategy of its edtech peers, In June, Vedantu launched its first hybrid learning center in Muzaffarpur. Its offline learning foray is largely focused on the test preparation segment as it looks to diversify from its core kindergarten-to-grade-12 offerings.