Vedantu Fires Another 385 Employees; Over 1,000 Laid Off So Far This Year
The Bengaluru-headquartered firm's founding team and C-suite executives may also take pay cuts.
Edtech unicorn Vedantu has fired another 385 employees, taking its total layoff count for the year to over 1,000, according to a person familiar with the matter.
The Bengaluru-headquartered firm's founding team and C-suite executives will also take paycuts as large as 50%, said the person quoted above, who spoke on condition of anonymity.
The development was first reported by Entrackr. The company has not responded to BQ Prime's queries so far.
The fresh firings come roughly two months after it acquired a majority stake in Deeksha, the test preparation platform, in a $40 million, i.e., Rs 330 crore deal.
While firing 624 employees earlier this year, Vedantu's Chief Executive Officer Vamsi Krishna said in a blog post that the current external environment is "tough".
“War in Europe, impending recession fears, and Fed rate interest hikes have led to inflationary pressures and massive corrections in stocks globally and in India as well. Given this environment, capital will be scarce for the upcoming quarters.”
Peers Byju's and FrontRow have also announced layoffs amid what is being termed "a funding winter for startups".