Edtech firm Vedantu CEO Vamsi Krishna said in an email to employees that the company has laid off 424 people. That is about 7 per cent of its total workforce of 5,900 employees.
While saying that a decision like this was extremely difficult to take, he added that it is “days like these that are heartbreaking and I hope to never see them again,” he wrote in the email while explaining why the company took the decision.
Krishna said that the external macroeconomic environment currently is tough with the Russia-Ukraine war, impending fears of recession, and Fed interest hikes that have led to inflationary pressures with massive correction in stocks globally and in India.
“Given this environment, capital will be scarce for upcoming quarters. With COVID tailwinds receding, schools, and offline models opening up, the hyper-growth of 9X, Vedantu experienced during the last 2 years will also get moderated. For long-term sustenance of the mission, V would need to adapt too,” he said.
He also added that the company will fall back on its “core philosophy” to guide them – continue innovation for the students, and build a long-term sustainable company with a resilient business model.
This is Vedantu’s second round of layoffs, as the Edtech unicorn in May laid off 200 employees or about 3.5% of its workforce, it was reported last week.
With this move, Vedantu joined Edtech companies Unacademy, and Lido Learning in laying off employees.
