Vedantu joins Netflix, Unacademy as edtech firm sacks over 400 employees
The CEO said that these calls are never easy to make and that this is not a reflection of the ability or performance of the impacted Vedans in any way, but that this is necessary for the continuance of Vedantu's goal.
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FollowVedantu, the edtech unicorn that made headlines earlier this month for laying off about 200 staff, is in the spotlight again for retrenching additional employees. This time, the corporation laid off almost 7% of its workers, or 424 individuals.
"Out of 5900 Vedans, 424 of our coworkers, or 7% of the firm, will be leaving with us. This has been a very tough decision to make, and I want each Vedan to understand why V had to make this decision and what it means to you and the future of Vedantu," according to a blog post by the Edtech.
In an email to employees, CEO Vamsi Krishna stated, "Currently, the external climate is challenging. War in Europe, worries of an oncoming recession, and Fed rate rises have all contributed to inflationary pressures, as well as a big correction in global and Indian stock markets. Given the current situation, funding will be tight in the next quarters."
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Given the external uncertainties and tightening of capital availability projected in the coming quarters, it is critical for Vedantu to construct a longer financial runway, according to Krishna.
The CEO said that these calls are never easy to make and that this is not a reflection of the ability or performance of the impacted Vedans in any way, but that this is necessary for the continuance of Vedantu's goal.
Vedans will receive extended health benefits for themselves and their families until August 5, 2022, as well as access to 15 doctor visits and subsidised pathology and pharmacy services through Practo until April 29, 2023. They will also be provided voluntary outplacement service support, which will include assistance with resume development, interview preparation, training, and opportunity discovery.
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Meanwhile, Vedantu recently let off 200 of its contractual and full-time staff, owing to a drop in demand for online education caused by the development of traditional schools and colleges. Previously, numerous Indian firms, including Unacademy, Meesho, and Trell, have reduced their employment.
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