Edtech firm Vedantu has laid off another 100 employees in a restructuring exercise marking the company’s third round of layoffs since May 2022.
The fresh round of layoffs came as a surprise to most of the employees as they believed that there wouldn’t be any more layoffs in the startup. Vedantu told the impacted employees that the layoffs were part of an organizational restructuring process.
Vedantu asked full-time employees from several teams to put down their papers. The permanent employees from the sales and training teams were laid off over the last month. The fresh round of layoffs came as a surprise to most of the employees as they believed that there wouldn’t be any more layoffs in the startup.
Vamsi 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.
During the layoff in May CEO, Vamsi Krishna wrote in the email while explaining why the company took the decision, “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.”
Earlier, he also said 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.
The startup had around 5,900 employees in total in May. In the earlier two layoffs company had asked more than 10% of employees to leave. With this move, Vedantu joined Edtech companies Unacademy, and Lido Learning in laying off employees.
