The news of Vedantu laying off 200 employees had hardly sunk in and the edtech company has again let go about seven per cent of its workforce, which was 5,600 strong.
In this round of layoffs, it has sent away 424 employees. Earlier, it had let go 120 contractors and about 80 full-time employees.
What is surprising is that the Bengaluru-based edtech firm had revealed its intentions to hire more than 1,000 when the first round of layoffs had happened.
Vamsi Krishna, CEO and co-founder, Vedantu, admits in a blog post that the decision to cut jobs has been a difficult one, but had to be done in the larger interest of the Company and its workforce. He blames the war in Europe, fear of recession and inflationary conditions for the volatile situation for businesses, globally.
He also indicated that the layoffs were necessary considering that schools have re-opened, offline classes have resumed and the demand for online tutoring will definitely be affected, and that less capital will be available going forward.
The laid off employees will, however, enjoy health benefits for themselves and their immediate family members for about three more months. Additionally, till April 2023, they will be able to avail 15 doctor consultations as well as discounts in pathology and pharmacy services.
Having raised Rs 740 crore in funding, in September 2021, Vedantu had achieved unicorn status. It faces stiff competition from Byju’s, Unacademy, Eruditus and UpGrad.