Vedantu, an edtech company, has laid off 424 employees, which amounts to 7 percent of its workforce. The company has about 5,900 employees.
“Currently, the external environment is tough. War in Europe, impending recession fears, and Fed rate interest hikes have led to inflationary pressures and massive corrections in stocks globally and in India as well. Given this environment, capital will be scarce in upcoming quarters,” Vamsi Krishna, chief executive officer and co-founder of Vedantu, said in a blog post.
Prior to this layoff, the startup had already fired 200 academicians and assistant teachers—both contractual and full-time—due to performance issues. Commenting on the same, Vedantu said that this is part of a re-evaluation process and that it had informed the impacted employees in advance. Vedantu had also mentioned that over 100 people would be hired to replace those who were laid off on May 5.
In total, Vendantu laid off 624 employees in May, accounting for nearly 10 percent of its workforce. Eight months ago, the edtech behemoth, which is expected to be worth more than $1 billion by October 2021, also announced plans to hire over 1,000 people. Vedantu, however, is not the only edtech company to do so. Unacademy, its competitor, has been reducing its workforce since February 2022 in order to become profitable by the end of this year. Like Vedantu, the company laid off 600 employees, or 10 percent of its workforce.
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