'I am truly sorry,' says Vedantu CEO as edtech firm fires over 420 employees

New Delhi: Online teaching platform Vedantu has fired about 424 employees, which constitute about 7% of its total workforce, according to a mail by the company’s CEO Vamsi Krishnan. The decision has come at a time when major edtech platforms in the country are reportedly facing a decreased traction as schools and colleges reopen nearly two years since the onset of the Covid-19 pandemic. Prior to Vedantu, several other edtech startups fired employees as the user count declined after the reopening of educational institutions in the country. 

According to Krishnan, the decision to lay off the employees was a difficult one to take. “Days like these are heartbreaking and I hope to never see them again,” he said in the email. 

Krishnan said in the email that the external macroeconomic environment currently is tough. He cited situations such as the Russia-Ukraine war, recession fears, and Fed interest hikes. According to him, all such factors have led to inflationary pressures with massive correction in stocks globally and in India. 

“Given this environment, capital will be scarce for upcoming quarters. With COVID tailwinds receding, schools and offline models opening up, the hyper-growth of 9X, Vedantu experienced during the last 2 years will also get moderated. For the long term sustenance of the mission, V would need to adapt too,” he said. 

Previously, edtech startups such as Unacademy, Lido Learning, and WhiteHat Jr, among others, have recently let go hundreds of their employees. Vedantu, too, recently let go hundreds of contractors and 80 full-time academics or assistant teachers. Also Read: Sensex falls 110 points as markets pare early gains in choppy trade

Vedantu CEO also noted that the edtech platform will fall back on its “core philosophy, which is to continue innovating for the students and build a long-term sustainable company with a resilient business model. Also Read: Realme Narzo 50 5G, Narzo 50 Pro 5G launched in India: Price, features, specs