Vedantu further fires 424 employees citing fear of recession

During this year ed-tech firms have laid off hundreds of their workforce

Within a fortnight of laying off 200 employees, ed-tech firm Vendantu has further fired 424 employees from the company citing tough external environment and fear of recession.

Vedantu, after laying off 200 employees, had shared its plan of hiring 1,000 employees this year.

"Today I am writing about one of the toughest decisions we had to take in the past many years. It is days like these that are heartbreaking and I hope to never see them again.

"There is no easy way to say this — out of 5,900 Vedans, 424 of our fellow teammates i.e., approximately seven per cent of our company, will be parting with us," Vedantu co-founder and CEO Vamsi Krishna said in a blog post.

He said that the current external environment is tough and the company is going back to its operating principal, where it will look to create runway for 30 months and lower customer acquisition cost.

"War in Europe, impending recession fears and Fed interest rate hikes have led to inflationary pressures with massive correction in stocks globally and in India as well. Given this environment, capital will be scarce for upcoming quarters," Mr. Krishna said.

He said that with COVID-19 tailwinds receding, schools and offline models opening up and the hyper growth of nine times Vedantu experienced during the last two years will also get moderated.