Edtech company Vedantu is in the process of sacking off more employees, according to two people aware of the development.
“Vedantu is firing around 385 employees across verticals such as HR, learning, and content,” one of the sources told Entrackr on the condition of anonymity. “The company may announce it officially.”
This comes soon after the majority stake acquisition by Vedantu of Deeksha, a test preparation platform in Karnataka for board and competitive exams. The Vamsi Krishna-led company spent $40 million on the deal.
The company also joined edtech unicorns to open offline tuition centers. Unacademy, Byju’s and Physicswallah have already opened their offline tuition classes across the country.
“Founding team including CXO [is] also taking 50% pay cut,” said another source. “The firm is now left with around 3,300 people.” Vedantu last raised $100 million in September last year. It also turned unicorn during the round.
Vedantu did not respond to Entrackr’s queries.
In May, Vedantu fired 624 employees in two phases. The company reportedly sacked another 100 employees in August. Besides Vedantu, Byju’s recently announced that it would be laying off 2,500 employees and Unacademy announced its second round of layoffs. LEAD, Eruditus, Practically also joined the list while Lido, Udayy, SuperLearn, and Crejo.Fun shut their operations permanently.
While Vedantu is yet to file its FY22 numbers, the company’s operating revenue grew 3.8X to Rs 93.7 crore in FY21 as compared to Rs 24.6 crore in FY20. Losses of the company inflated 4X to Rs 604.28 crore during the period.