Lido Learning, the edtech firm, had abruptly fired and demanded resignations from over 1200 employees in the first week of February, 2022. Recently the media has reported that the Company has asked the employees to digitally sign the full and final settlement letter received from the Company.
Though the amount mentioned in the letter was correct, the employees are yet to receive their full and final settlement amount even after four months of being laid off. The letter did not mention any specific date by when the employees were likely to receive their pending dues.
Many of the employees who come from small towns and cities, are finding it difficult to survive and make ends meet as some of them are still jobless and seeking jobs elsewhere.
The employees had been fired over a virtual town hall. The reason stated was a financial / funds crunch and the Company wanted to scale down some of its operations and sell its assets.
The fact that the Company was facing a shortage of funds was revealed by Sahil Sheth, CEO and founder, Lido Learning. Interestingly, this came just came four months after the Company had raised $10 million from Ronnie Screwvala’s Unilazer Ventures.
Apart from Lido Learning, many other startups such as Vedantu, Cars 24 and Ola have laid off employees in the last three months. Based on various media reports, it is estimated that more than 8000 people in India have been laid off by startups since January 2022.