Vedantu, the edtech unicorn that made headlines earlier this month for laying off about 200 employees, is cutting off even more staff. This time, the company laid off nearly 7% of its workers, or 424 people.
“Currently, the external environment is tough. War in Europe, impending recession fears, and Fed rate interest hikes have led to inflationary pressures with massive correction in stocks globally and in India as well. Given this environment, capital will be scarce for upcoming quarters,” Krishna told Vedantu’s employees in a blog.
“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,” Krishna added.
Krishna stated that the company wants to build a runway of at least 30 months without sacrificing its primary value of student centricity, and that it will focus on lowering client acquisition costs through innovation and automation in operations.
Krishna also stated that Vedantu reviewed all of its projects and divided them into core and non-core projects in order to align all projects and teams with Vedantu’s primary focus areas and rationalise those that were out of sync.
“The result is, that a few teams and projects will have to be deprioritized and, in the process, a few of our Vedans will be let go as well,” Krishna stated.
Employees who are being reassessed will receive an email inviting them to meet with HR and their managers one-on-one, according to Krishna, who also stated that the company will extend benefits such as health insurance to employees and their families until August 5. Krishna further stated that Practo will provide access to 15 doctor consultations as well as cheap pathology and pharmacy services until April 29 of next year.