Edtech start-up Vedantu has laid off round 200 workers and contractual employees, becoming a member of a protracted checklist of tech start-ups which have trimmed group sizes to maintain prices below test.
Layoffs at Bengaluru-based Vedantu come just some months after the ed-tech agency attained the coveted unicorn standing in a $100 million funding spherical led by Temasek in September 2021.
In an announcement launched on Thursday, Vendatu stated that round 3.5% of its workers had been affected resulting from some “rejigs” and “rebalancing” of sure tutorial roles.
“We have over 6,000 employees, out of which 120 contractors and 80 full-time or 3.5% of the total strength, are academics or assistant teachers, were being reevaluated. We have an annual contract with them, and at the beginning of every academic year, we follow a process of load rebalancing where we rejig, pertaining to these roles, based on our growth expectations. Reassessment cannot be done in the middle of the year as the learning experience and continuity of the teachers throughout the year is our first priority”.
The start-up, nevertheless, talked about that there are plans to rent extra workers within the coming months to fulfill demand from new customers.
“With more technology intervention, restructuring of the class format, and changes in the categories, we relook at these roles of our academics and assistant teachers. As we synchronise our growth goals for this year, we are also hiring more than 1,000 employees in various teams including 100+ for similar positions,” the assertion added.
Founded in 2011 by Anand Prakash, Pulkit Jain, Saurabh Saxena, and Vamsi Krishna, Vedantu is likely one of the greatest edtech start-ups to return out of India. Vedantu provides free and paid on-line courses (complementing college training) to K12 college students, in addition to preparation for aggressive exams akin to IIT-JEE, NEET, and many others.
To date, the start-up has raised round $290 million in funding led by prime traders like Accel, Tiger Global, Coatue, WestBridge Capital and plenty of others.
Prior to Vedantu, the edtech phase alone has seen a number of layoffs throughout huge names akin to Unacademy and Lido. Last month Uncademy laid off near 600 workers, in a cost-optimisation drive. The edtech unicorn at present employs greater than 6,000 full-time and contractual employees. Ronnie Screwvala-backed edtech start-up Lido Learning additionally laid off one other 200 workers in February this yr resulting from a monetary disaster stemming from a scarcity of funds.
Recently few high-growth start-ups together with Trell, OkCredit, Furlenco, Lido, Meesho, Unacademy, and Better.com collectively laid off greater than 1,500 workers. Experts say {that a} slowdown within the progress and late-stage funding coupled with traders and board members turning cautious post-covid have pushed start-ups to trim down their employee-related bills.
Read additionally: Delhi’s training mannequin has gone by means of ‘revolutionary changes’, says Manish Sisodia
Source: www.financialexpress.com”