Mumbai, May 18: Edtech giant Vedantu on Wednesday said that it is laying off its 424 employees as the company is expecting a scarcity of funds in the coming quarters amid a slowdown in global financial markets. Vedantu had made headlines earlier this month for laying off around 200 employees. This time, the company is sacking 7% of the workforce.
Vedantu CEO Vamsi Krishna, in an email to employees, said "currently, the external environment is tough. 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." Netflix Lays Off 150 US-Based Employees Amid Slow Revenue Growth: Report.
"It is days like these that are heartbreaking, and I hope to never see them again... At a personal level, I find it gut-wrenching to live through such a decision and to feel that somehow my decisions have led to such consequences. There is no way around this thought. There is no easy way to say this, but I am truly sorry," Krishna added. Meesho Lays Off 150 Employees in Restructuring of Grocery Business Days After Unacademy.
CEO Vamsi Krishna affirmed that the employees who are moving on will continue to receive several benefits for time being. Krishna said benefits such as health benefits for the employees and their families are extended till August 5. Krishna also said that the company will be extending access to 15 doctor consultations and discounted pathology and pharmacy services through Practo till April 29 next year.
(The above story first appeared on LatestLY on May 18, 2022 06:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).