Edtech unicorn Vedantu lays off about 385 employees: Report
The development comes after Vedantu acquired a majority stake in Deeksha (Ace Creative Learning) at a deal size of $40 million to strengthen its offline presence.
Tiger Global-backed edtech unicorn is reportedly laying off about 385 employees across different verticals like HR, learning, and content.
An Entrackr report stated that the edtech company is now left with around 3,300 people. Vedantu’s founding team including its CXO are taking a 50% pay cut, the report noted.
YourStory could not independently verify the report. Vedantu did not respond to queries at the time of publication.
The development comes after Vedantu acquired a majority stake in Deeksha (Ace Creative Learning) at a deal size of $40 million to strengthen its offline presence.
The edtech firm has laid off over 1,000 employees this year. This May, the company laid off approximately 624 employees in two phases—due to changes in the business environment and as part of the company’s annual review of its employees.
Edtech blues
Vedantu's recent layoffs come at a time when edtech unicorns are witnessing losses, cutting jobs, slowing expansion plans, and trying to burn as little cash as possible amid a funding winter.
Recently, BYJU'S, India's most valuable startup, said it will lay off 2,500 employees, which makes for about 5% of its workforce, across product, content, media, and technology teams in a cost-cutting initiative as the company’s losses widened.
Last month, Unacademy laid off 10% of its workforce or about 350 employees across verticals.
Other edtech firms like Lido Learning, Udayy, Crejo.Fun, Qin1, SuperLearn are halting operations.