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| Edited By: DNA Web Team |Source: DNA Web Desk |Updated: May 18, 2022, 05:01 PM IST
New Delhi: Vedantu, one of many Indian edtech unicorns, has laid off around 7% of the company's workforce saying it expects muted growth due to the reopening of schools as the coronavirus pandemic remains under control. To the 424 employees it has let go, the company wrote an email and rued lack of capital, citing Russia-Ukraine war, recession fears and inflationary pressure.
Vamsi Krishna, Vedantu's CEO, said currently, the environment is touch.
"War in Europe, impending recession fears, and Fed rate interest 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," he was quoted in an email by Fortune India.
He said with the receding coronavirus pandemic, the growth of the company will get stemmed and for long term sustenance, it would have to adapt.
He said laying off employees was the most difficult call to make. He said a few teams and projects will discontinued and some employees will be let go.
Recently, Better.com, a US-based mortgage company, laid off thousands of employees in multiple tranches over the last six months.
