Vedantu Layoffs: Reasons, Impact and Future

In recent times, layoffs have become a common occurrence in the corporate world. Many companies have had to resort to workforce optimization to stay afloat due to various factors, such as market conditions, mergers and acquisitions, or restructuring. Vedantu, a Bengaluru-based online education provider, is the latest organization to join this bandwagon. On May 18th, 2022, Vedantu announced that it would be laying off 424 employees, which constitutes around 7% of its workforce. Let’s delve deeper into this issue and find out what led to these layoffs.

Vedantu – Company Introduction and History

Vedantu is an Indian edtech company that was founded in 2011 by Anand Prakash and Vamsi Krishna. The company started as an online portal where students could get answers to their doubts in real-time. Over the years, it has evolved to become a comprehensive learning solution provider, offering personalized live online classes, recorded video lectures, and study material for K-12 students. Vedantu’s main objective is to make quality education accessible to all students, regardless of their location or financial status.

Funding and Investors

Vedantu has raised a total of $292 million in funding to date, with the latest being a Series E funding round in October 2021. The funding was led by Falcon Edge Capital and GIC, with participation from existing investors, including Coatue, WestBridge Capital, and Tiger Global. The funds are supposed to be used to expand Vedantu’s user base and develop new products.


Vedantu has been witnessing steady growth since its inception. In FY 2021, the company’s revenue grew by 90% to $100 million, and it claimed to have over 1.5 million students across India. Vedantu’s revenue is primarily generated through its subscription-based model, where students pay for online coaching classes. The company has been successful in tapping the Indian online education market, which is expected to reach $5.7 billion by 2025.

Reason for Layoffs

According to a statement issued by Vamsi Krishna, Vedantu’s CEO, the layoffs were a result of the company’s strategy to optimize costs and improve efficiency. He also stated that most of the laid-off employees were related to the sales and marketing function, which was underperforming. The pandemic and its aftermath have disrupted the education industry, forcing many companies to revisit their strategies and cut costs. Vedantu’s decision to lay off employees is in line with this trend.

Number of Employees Laid Off

Vedantu laid off 424 employees, constituting around 7% of its workforce. This number may seem small compared to other companies’ layoffs, but it is significant for Vedantu, which had only around 5,800 employees before the layoffs. The affected employees were offered a severance package and support in finding new employment opportunities.

Stakeholder Statements on Layoffs

The layoffs at Vedantu have received mixed reactions from stakeholders. Some have applauded the company’s move to optimize costs and improve efficiency. Others have criticized the company’s decision, stating that layoffs during a pandemic are insensitive and unfair to the affected employees. Vamsi Krishna, in his statement, has assured that Vedantu remains committed to the company’s vision and will continue to invest in technology and innovation to provide quality education to students.


In conclusion, layoffs, while a tough decision, have become a necessity for companies to stay competitive and navigate the challenges of the market. Vedantu’s decision to lay off 424 employees is unfortunate, but it underscores the turmoil in the edtech industry. The pandemic has accelerated the shift towards online education, and companies must adapt to stay relevant. Vedantu’s focus on cost optimization and efficiency will undoubtedly help the company emerge stronger and continue to provide quality education to students.

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