Vedantu Layoffs: Many Indians working in the US on H1B visas and working for big tech in the country are among the two lakh professionals who have faced massive layoffs in the tech sector these days. At the same time, edtech platforms, among new-age digital startups in India, have already laid off over 7,000 employees in 2022 as funding stops. Online education firm Vedantu, which joins names like Unacademy and Byju’s, has also laid off 385 more people, taking its total headcount to 1,100.
Vedantu Layoffs: Downsizing while expanding operations
The edtech startup reported a loss of Rs 604 crore in FY11 but also invested in acquiring test preparation platform Diksha in October this year. Vedantu achieved unicorn status last year after securing $100 million in funding and spending three times as much as its rival Unacademy. The firm, which has made four rounds of layoffs so far, is also offering two months’ salary as severance pay, and has extended health insurance for laid-off employees until March 2023.
Founders also affected
Left with 3,300 employees after the recent layoffs, founding team of Vedantu has reportedly taken a 50 per cent pay cut. Founders have also tried to explain the layoffs by citing recession, the Russia-Ukraine war and rising interest rates, among other global headwinds. But the edtech space has been largely affected by the reopening of schools and reduced demand for online learning amid the pandemic.
India’s startup ecosystem in pain
Among major players in the edtech space that flourished during the lockdown, Unacademy has also cut its workforce by 10 per cent, while Byju’s has made the biggest job cuts, affecting 2,500 people. Apart from edtech, other names in the startup ecosystem like Oyo and Zomato have also resorted to layoffs, with Oyo laying off 600 people recently.