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Edtech major Vedantu has laid off another 100 employees from the sales enablement team as part of business restructuring.
This is the third round of lay-offs after the company laid off 624 employees in May. At that time, in an email to employees, CEO Vamsi Krishna said the decision was taken for the long-term sustenance of Vedantu.
According to a source close to the development, the recent lay-offs have not impacted the sales team. Instead, the impact is on enablement roles such as recruiting and training. All the impacted employees have been given two months’ severance.
Inc42 was the first to report this development. In May, Krishna’s email noted that May layoffs are “one-time activity with no further cycles going forward.” He added that Vedantu wants to build a longer capital runway given the uncertainties of the outside world and tightening of capital availability expected for the next few quarters.
To achieve this, the company is focusing on creating a runway for at least 30 months, reduce its customer acquisition cost through innovation and automation around operations, aligning all projects and teams to the core focus areas , and rationalising those that are not in sync.
Krishna also acknowledged that with Covid tailwinds receding, schools and offline models opening up, the hyper-growth of 9X experienced during the last two years will get moderated.
“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 the upcoming quarters,” he added.
Edtech has seen the highest number of lay-offs in the ongoing funding slowdown, especially the K12 segment. In addition to Vedantu, all major players including Byju’s, Unacademy and Eruditus have laid off employees in the past few months.
Vedantu did not comment on this story.
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