For the edtech startups the Covid-19 pandemic was an opportunity to gain. While colleges and schools were shut for months and students signing to sign up in huge numbers on educational platforms with the hope of being able to cope with their academics. The increase in popularity was a hit with investors who poured hundreds of millions into this sector
However, the reopening of colleges and schools is forcing startups in edtech to reduce their expenses through cutting back as well as restructuring and pivots, since what was once thought of as an unending upward spiral has now turned into signs of consolidation
Startups like Vedantu, White Hat Jr, Lido Learning and Unacademy as well as others, have recently laid off their employees in the course of a cost-cutting process. Presently, 4 to five lakh people work in the edtech industry According to media reports, around 55,000 employees could be facing hard times in the coming months.
The number of startups that have recently launched in the field will eventually drop. While the growth rate are expected to decrease, the growth will not stop because a lot of schools and students are still to be covered by the edtech,"
Vedantu has dismissed 424 employees. This is around 7% of its total workforce, as per an email sent by the CEO of the company Vamsi Krishnan. "Days like these are heartbreaking and I hope to never see them again,
Unacademy had said that it was letting go of more than 800 employees because of the issue of redundancy and poor performance.
The employees who were laid off comprised employees from edtech company PrepLadder which it bought last year. The company that makes edtech has revealed plans to enter the field of offline learning. The company is planning to set up the first learning centers for classes that are physically based across India according to an announcement.
The company that is owned by BYJU, White Hat Jr. was hit with resignations of around 200-250 employees over the past couple of months, after the company's edtech venture asked workers to work at its Mumbai and Gurugram offices.