Adding to the list of layoffs, ed-tech major Vedantu backed by Tiger Global has reportedly laid off about 385 employees across different verticals like HR, learning, and content.

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According to a story by news agency IANS layoffs have occurred in the sales, HR, and content departments as part of an aggressive effort to cut excess burn and prioritise profitability above growth.

Vedantu had to lay off employees due to the ed-tech platform's stalling growth in the primary online learning area, the sources told IANS.

Since the start of 2022, Vedantu has sacked more than 1,000 employees. Vedantu let go of approximately 620 workers in May, and then there were more layoffs in August. The corporation then laid off 100 employees.

Vamsi Krishna, co-founder and CEO (chief executive officer) of Vedantu, in May, had cited "scarce capital for coming quarters" as the reason for layoffs.

Recently, Vedantu also acquired a majority stake in Deeksha (Ace Creative Learning) at a deal size of $40 million to strengthen its offline presence.

The ed-tech layoffs

Edtech has recently been on the radar for being the industry with the highest rate of startup layoffs. In India, more than 16,000 employees have been asked to go by about 44 startups.

As per data and reports, 11 ed-tech start-ups have collectively let go of roughly 6,500 employees this year, including industry giants Byju's, Unacademy, and Vedantu. Additionally, the sector has experienced changes in business models, widespread cost-cutting initiatives, and complete shutdowns.

Edtech funding has also declined in 2022 the sector has raised total funding of $2.43 billion till October, down by 38 percent from $3.98 billion last year.

Recently, BYJU'S, announced it would slash costs by terminating 2,500 employees, or around 5 percent of its staff, from its product, content, media, and technology departments. Unacademy laid off 350 workers last month, representing 10 percent of the overall workforce.

Also read: Vedantu layoffs add another 400 to the list of unexpectedly unemployed

First Published:Dec 8, 2022 12:58 PM IST