Vedantu lays off another 100 employees after laying off 624 in May

Licensed Vedantu another 100 full-time employees from its sales teams last month as part of a restructuring exercisetwo people aware of the confirmed layoffs at ET.

This is the third round of layoffs at Bengaluru’s edtech unicorn, which sacked
approximately 624 full-time and contract employees in two batches in May.

The company became a unicorn last September after raising $100 million through Temasek-backed impact investment fund ABC World Asia.

Interestingly, co-founder and chief executive Vamsi Krishna had said in a memo to employees on May 18 that the previous cutback exercise was a “one-time activity,” with no more layoffs planned. The note was also posted on the company’s blog.

He had blamed global macro headwinds and fears of an impending recession as the main reasons for the layoffs.

“Currently, the external environment is challenging. War in Europe, fears of impending recession and Fed interest rate hikes have led to inflationary pressures with a massive correction in equities globally and in India as well. In this context, capital will be scarce for the next few quarters.With the tailwinds of Covid-19 receding, the opening of schools and offline models, the hyper-growth of Vedantu multiplied by nine in the past two years will also be moderate. For the long-term maintenance of the mission, V (Vedantu) should also adapt,” he said.

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Krishna added that through the layoffs, the company was trying to create a track for 30 months, focus on reducing customer acquisition costs and aligning all teams and projects in its area of ​​work. main intervention.

Inc42 first reported Vedantu’s latest round of layoffs on Tuesday evening.

ET first reported on April 7 that edtech rival unicorn Unacademy had laid off around 1,000 employees, including permanent and contract staff at its core offerings and group companies such as PrepLadder.

As investors push founders to prepare for a funding winter, Indian startups have amassed more than 10,000 employees this year.

With the opening up of offline learning, Indian edtech companies have also found themselves in a sticky spot as the demand for online education weakens.

Several Indian edtech majors such as Byju’s and Unacademy have taken the fight offline as they continue to jostle for market share with traditional tutoring companies.

In June, Vedantu launched its first hybrid learning center in Muzaffarpur, following the strategy of its edtech peers. Its foray into offline learning is largely focused on the test prep segment, as it seeks to branch out from its core K-12 offerings.

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