Eruditus, the Mumbai-based edtech unicorn, has recently made some headlines with its latest announcement of a layoff. The company has reportedly trimmed its workforce and laid off around 40 employees as per the latest reports. The announcement has surely come as a shock to many who believed that the company was doing well despite the ongoing COVID-19 pandemic. It is, therefore, crucial to understand what led to this decision and how it might impact the company’s future performance.
Eruditus Introduction
Eruditus is an Indian edtech company that focuses on providing executive education programs to professionals. The company was founded in 2010 by Chaitanya Kalipatnapu and Ashwin Damera. It has its headquarters in Mumbai, Maharashtra, and has a presence in several countries such as Singapore, Dubai, and Mexico. The company has come a long way since its inception and has been successful in raising funding from reputed investors. It recently raised $1200 million in its Series E funding round, which was led by Softbank. The company has been able to carve its niche in the edtech industry and has been successful in delivering executive education programs to several reputed organizations.
Company History and Funding
Eruditus was founded in 2010 with the aim of providing executive education programs to professionals. The company started with a small team of employees but quickly garnered attention due to its innovative approach to delivering education programs. The company was able to raise funding from several reputed investors such as Bertelsmann, Sequoia Capital, and Prosus Ventures, among others. Eruditus has been able to raise over $270 million in funding to date, including its Series E funding round, which was led by Softbank.
Eruditus Performance
Eruditus has been successful in delivering executive education programs to professionals across various industries. The company has partnered with several reputed organizations such as MIT, Harvard Business School, and Wharton School. It offers programs in various fields such as data science, digital transformation, and leadership. The company has been able to establish its presence in several countries and has formed partnerships with several reputed universities and educational institutions.
Reasons for Layoffs
Despite its success in the edtech industry, Eruditus has been forced to lay off around 40 employees recently. The company has cited the ongoing COVID-19 pandemic as the reason for the layoffs. The pandemic has led to several challenges, including a slowdown in the economy, which has impacted the company’s revenue. The layoffs were, therefore, seen as a necessary step to ensure the company’s survival during these uncertain times.
Impact of Layoffs
The layoffs are expected to impact the company’s future performance. The company has already gained a reputation for delivering high-quality education programs, but the layoffs could impact its ability to continue delivering such programs. The layoffs could also impact the morale of the remaining employees, which could affect the company’s overall performance. Nevertheless, the company remains optimistic about its future prospects and hopes to bounce back soon.
Statement from Company Stakeholders
Eruditus has not made any official statement regarding the layoffs. However, it is expected that the company’s leadership team is closely monitoring the situation and is taking all necessary steps to ensure the company’s long-term survival. The investors who have backed the company in the past have also not made any official statements yet.
Conclusion
In conclusion, Eruditus’s recent layoff of around 40 employees has come as a surprise to many who believed that the company was doing well. The company has cited the ongoing COVID-19 pandemic as the reason for the layoffs. The layoffs are expected to impact the company’s future performance, but the company remains optimistic about its future prospects. Eruditus has established itself as a reputed edtech company that specializes in delivering executive education programs. The company has raised over $270 million in funding to date and has partnerships with several reputed organizations. The company hopes to bounce back soon and continue delivering high-quality education programs to professionals across various industries.
