Of the laid off employees, 120 were on a contract and 80 were full-time staffers, a Vedantu spokesperson told CNBC-TV18. This constitutes 3.5 percent of Vedantu’s 6,000-strong workforce.
Edtech unicorn Vedantu has laid off almost 200 contractual and full-time employees, becoming the latest startup to cut staff.
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Of these, 120 were contract-based employees and 80 were full-time staffers, a Vedantu spokesperson told CNBC-TV18. This constitutes 3.5 percent of Vedantu’s 6,000-strong workforce.
“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 spokesperson added.
On reports of the layoffs being an attempt to reduce costs amid tightening in late-stage funding, the company spokesperson added, “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.”
The startup stated that it hiring more than 1,000 employees in various teams including more than 10+ for similar positions.
Vedantu was the third edtech startup that entered the unicorn club in 2021 along with Eruditus and UpGrad. The company is also looking forward to launching global operations ahead of an initial public offering (IPO) in 2023-24, according to a report by the Mint.
In the past few months, several growth and late-stage companies have trimmed their workforce. Just last month, Unacademy laid off around 600 employees/contractual workers. While the surge in demand for remote learning has benefited the edtech sector over the last two years, it has also led to intense competition, hitting the prospects of some smaller companies. Lido Learning asked over 1,200 of its employees to resign before the company shut its operations in March this year.