Why are Edtech companies laying off people so aggressively?

One thing is certain that all is not well with the EDTECH companies. Less than a couple of months after Unacademy and Lido Learning laid off employees to cut costs, even an established player like Vedantu jumped into the bandwagon to cut jobs. Apparently, Vedantu has laid off 200 employees; representing 3.5% of its total staff.

Vedantu has taken pains to underline that they are also recruiting about 1,000 people fresh, but the markets are not too enthused. Most Edtech companies are finding funds hard to come by now. It is reported that with regular classes and tuition starting, edtech companies are seeing demand wane. This is after 2 years of bumper growth during COVID-19.