Vedantu

Key Highlights:

  • Edtech Vedantu To Layoff Over 400 Employees.
  • Vedantu CEO Vamsi Krishna took to LinkedIn to announce the layoffs.
  • More than 600 layoffs have been reported so far, or 10.6% of the entire workforce.

 

Vedantu is laying off 424 employees out of its total 5,900. Following the 200 employees laid off earlier this month, the edtech unicorn has now cut another 424 employees. More than 600 layoffs have been reported so far, or 10.6% of the entire workforce.

Vedantu CEO Vamsi Krishna took to LinkedIn to announce the layoffs. The fired employees have not yet been informed that they were affected, according to a blog. There was a blog post stating that the employees leaving would receive an email titled ‘Discussion’, following which their managers/leaders and HR personnel would have a 1:1 conversation. The startup said the layoffs will be extended health benefits until August 5, 2022, and will provide discounted pathology and pharmacy services through Practo until April 29, 2023. Amounts of severance pay for affected employees are not published by the startup.

In addition to outplacement services, Vedantu plans to offer resume preparation, interview preparation, training, and job opportunities for affected employees. Additionally, Krishna asked hiring companies and HR departments to contact him or Vedantu HR so that laid-off employees could find work.

The firm took this decision because of the war in Europe, upcoming recession fears, and interest rate hikes by the federal government which caused inflationary pressures and a massive correction in stocks.

As per the, report both permanent and contractual employees were terminated in the first week of May 2022.
It was explained by Vedantu spokesperson that the layoffs were to rebalance the load as the edtech was looking to intervene via technology, restructure the class format, and change certain categories on its platform.

Additionally, it added that it would be hiring more than 1K people in various teams, including 100+ for similar positions. Vedantu laid off 600+ employees, all within 15 days, shortly after opening a new office in Bengaluru, slashing its course prices by 70%, and exploring a hybrid offline-online model.

The layoffs are a cost-cutting move aimed at saving the company’s capital because certain teams are deprioritized in the cost-cutting initiative.

Similarly, another edtech unicorn, Unacademy, recently let go 100s of its employees (full time and educators) after letting go over 600 full-timers and 325 part-timers and educators.
Unacademy is not the first edtech startup to lay off employees – Lido did the same after failing to secure funding. Around 40 employees were laid off by bookkeeping startup OkCredit in February 2022, as the company intended to focus on finance.

More startups have been laid off this year, including Meesho, Trell, and Furlenco.

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