Vedantu laid off around 385 employees in the third round of layoffs, this year
Vedantu laid off around 385 employees in the third round of layoffs, this year. This forms nearly 11.6 percent of the company workforce, as per the sources.
Reason for layoffs
The move of laying off such a number of employees can be seen as a part of the drive in the field of the tech sector, towards profitability. It can be made through saving or deduction of cost, and consolidation. This is the result of the drying up of funds of the edtech company.
Earlier layoffs were done by Vedantu
It has to be noted that the Edtech unicorn Vedantu, has previously sacked over 1,100 employees, amid funding winter. This number includes both full-time and contractual employees of the company.
The company has also laid off around 100 full-time employees, coming from its sales team. This was done in the month of August, this year. In another major setback, Vedantu has fired almost 624 full-time employees.
Also, some of the contractual employees of the company were fired in two batches in the month of May, this year.
Also Read: Vedantu is on schedule to be ‘IPO-ready’ in the next 18-24 months
Pay cuts for the employees
The co-founders of the Company, and a few members of the leadership team, have also accepted a pay cut of around fifty percent in their salaries.
Benefits provided to the employees who are laid off by Vedantu
There are certain benefits that are being provided to laid-off employees. This includes extended health benefits for themselves as well as their family members. These employees might also receive some kind of voluntary outplacement service support, as confirmed by the company’s sources.
It has to be noted that the layoffs made by it have come into the picture. It came at a time, when all the schools and colleges which were running online classes, owing to the pandemic, have reopened. Classes have shifted back to classrooms, as were earlier.
Vedantu is an Indian online tutoring platform launched in 2014 based in the city of Bengaluru, in India.
The founders of the Company are Vamsi Krishna, Pulkit Jain, Anand Prakash, and Saurabh Saxena and the subsidiaries include Adinio Services Private Limited, Ace Creative Learning Pvt. Ltd, and Pedagogy.