Edtech startup Cuemath lets go off 100 more employees to reduce costs
The company said the adverse macro environment for edtech startups had led to this decision, despite the progress it had made over the past few months.
Bengalure-based edtech startup Cuemath has reduced its workforce further, letting go of 100 more employees, as part of a restructuring exercise in response to the challenging macro environment.
The first round of layoffs happened in May, YourStory had reported.
“We’ve taken the difficult decision to reduce the size of our team as part of a restructuring exercise across the company. In this process, we will be bidding goodbye to 100+ talented Cuemath employees,” said a spokesperson from , in a statement.
According to the spokesperson, the company had made a lot of progress over the past few months, strengthening the product experience, growing the revenue base, and improving key operating metrics, while keeping costs under control.
“However, we also realize that the adverse macro-environment for startups - and especially in the edtech space - is here to stay for an uncertain amount of time. This has led us to recalibrate our business priorities and pursue a more sustainable growth path,” he said.
Manan Khurma, Founder and CEO of Cuemath, informed the employees about this decision through an e-mail, Moneycontrol reported. YourStory has seen a copy of the internal mail.
“Unfortunately, our revenue and cost trajectories are still divergent from expectations, and our problems are compounded by the bad macro situation around capital availability, particularly for edtech,” the e-mail read.
"This means that we will have to move to a leaner team structure, in which some roles will get redundant. That exercise is being carried out today."
The company had already implemented job cuts in May, affecting about 100 employees. During that round of layoffs, Khurma had resumed the role of CEO.
“Post the May 8th exits, I had said that hopefully the company will not take a similar action again… I had underestimated the extent of the turnaround required to get the company into a healthy situation,” Khurma told the employees.
In June last year, Cuemath secured $57 million in a funding round led by Alpha Wave Global—at a valuation of $407 million, marking an increase of over two times.
Many edtech startups, including Teachmint, Skill-Lync, and BYJU'S, have let go of their employees this year due to the slump in the edtech industry.
Edited by Swetha Kannan