Vedantu follows in the footsteps of Unacademy — lays off more than 600 people in May

  • Vedantu announced on Wednesday that it has laid off another 424 employees.
  • The development comes just two weeks after it let go of 200 employees.
  • CEO Vamsi Krishna thinks capital will be scarce in the coming months.

Vedantu — an edtech company competing with Byju’s and Unacademy — laid off 424 employees, the company said Wednesday (May 18). These 424 employees represent 7% of the company’s 5,900 workforce.

“Currently, the external environment is tough. War in Europe, looming recession fears and Fed rate hikes have led to inflationary pressures with a massive correction in equities worldwide and also in India. Given this environment, capital will be scarce in the coming quarters,” said Vamsi Krishna, chief executive officer and co-founder of Vedantu in a statement.
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This development comes two weeks after it fired 200 academics and assistant teachers — both contracted and full-time — over performance issues. Vedantu had said at the time that this is part of a re-evaluation process and that it had informed the affected employees in advance. Vedantu had also said that more than 100 people will be hired to replace those fired on May 5.

In total, Vendantu laid off 624 employees in May, representing nearly 10% of its workforce.

Eight months ago, the edtech giant — valued at more than $1 billion as of October 2021 — had also announced its plans to hire more than 1,000 employees. However, Vedantu is not the only edtech company doing this. Its rival Unacademy has been cutting its workforce since February 2022 to be profitable by the end of this year. The company, like Vedantu, has also laid off 600 employees or 10% of its workforce.

“Based on the results of several assessments, a small subset of employee, contractor, and educator roles were re-evaluated for the redundancy and performance of the roles, as is common for any organization of our size and scale. The company has made a good faith effort to ensure that they receive certain additional benefits and a generous severance package…,” Unacademy said.


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