NEW DELHI: Education technology firm Vedantu laid off 424 more employees on Wednesday, the company said in a blog post.
Citing scarcity of capital for the upcoming quarters, the firm it will be laying off 7 per cent of its workforce. The company also stated the existing geopolitical crisis as one of the reasons for making the decision.
“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,” Vedantu CEO and founder Vamsi Krishna said.
He also said that with Covid cases receding and offline mode of education reopening, Vedantu’s growth will get moderated.
“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 said.
Earlier this month, the firm had laid off 200 employees as it did not find them in sync with the company’s growth expectation.
So far, Vedantu has laid off 624 employees.
Krishna said that people who have been laid off will receive an email from firstname.lastname@example.org with the subject line- Discussion.
Further, health benefits for self and family will be extended till August 5 and access to 15 doctor consultations and discounted pathology and pharmacy services through Practo will be given till April 29, 2023.
The outgoing employees will also receive voluntary outplacement service support – this would include support on resume building, interviewing preparation support, training and opportunity identification.
Last month, edtech company Unacademy laid off around 600 employees on account of non-performance and role redundancy as the company looks to enhance efficiency and become profitable by the end of this year.