Vedantu and LEAD Lay Off Nearly 100 Employees Each

One of the industry leaders in the edtech arena, Vedantu, has laid off 100 more of its employees. 

India is witnessing layoffs by massive companies regularly and now, edtech platforms such as Vedantu and LEAD (formerly LEAD School) have also asked 100 of their employees to leave the respective companies. In May 2022, Vedantu fired its 624 full-time employees who accounted for 10 per cent of the company’s workforce.

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Severance package

Inc24 was the first media outlet to break the news of fresh layoffs at Vedantu. As per sources, Vedantu will offer a two-month salary as severance to those who have been asked to leave. This new round of lay-offs is being called ‘‘restructuring’’ by the company.

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Reduction in numbers

In May, Vedantu had 5,900 employees, but so far, the company has laid down 724 workers. Apart from Vedantu, Edtech unicorn LEAD (formerly LEAD School) has also reduced its workforce by at least 40 per cent. However, the company denied the claim.

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LEAD’s official statement 

In a statement to the IANS, the company said that last month; it concluded the performance appraisal process. Therefore, during this period, they experience some churn time every year.

The company spokesperson further added, “We would like to assure all our stakeholders that LEAD is adequately staffed for its growth aspirations and with schools across India now open again, we are working on bringing innovation and transformation back to these institutions.”

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Valuation and other lay-offs

Earlier this year, LEAD touched a valuation of one billion US dollars after raising 100 million US dollars. Apart from LEAD, edtech companies such as Unacademy (1,150 employees), FrontRow (150 full-time and contractual employees) BYJU’S (550 at Toppr and Whitehat Jr) and Vedantu (724) have fired over 6,000 employees. Not to forget, Info Edge-backed Udayy fired all its 100 employees and closed its operations.

The reopening of schools, colleges, physical tuition centres and the global macroeconomic conditions have hammered the edtech sector.