Adda247 Layoffs: Google-Backed Edtech Startup Cuts 20% of Workforce in Restructuring Ahead of Planned IPO

Google-backed edtech startup Adda247 has laid off approximately 200 employees, representing nearly 20 per cent of its workforce, as part of a significant internal restructuring. The Gurugram-based company, which specialises in test preparation for government exams, reportedly initiated the job cuts on April 30. The move comes as the firm faces slowing revenue growth and prepares to streamline its financial profile ahead of a planned initial public offering (IPO) expected within the next 12 to 18 months.

Scope of Restructuring at Adda247

The layoffs have impacted multiple departments across the organisation, including product, design, content, and technology. Specific coaching verticals, such as those focusing on the Common University Entrance Test (CUET), UPSC, and judiciary examinations, were notably affected. AI Is Not Replacing Humans but Its Costs Are Driving Layoffs in Tech Industry: Meta Engineer Arnav Gupta.

According to internal accounts, some staff members were informed of the decision during one-on-one meetings, with a few roles being eliminated with immediate effect. While junior staff were reportedly told the decision was performance-linked, senior professionals were informed that the cuts were part of a broader strategy to reduce redundancies and shutter underperforming categories.

Strategic Shift Toward Profitability

Adda247 has publicly stated that its long-term goal is to achieve group-level profitability by FY27. For the fiscal year ending March 2025 (FY25), the company recorded approximately INR 240 crore in revenue with losses standing at nearly INR 70 crore. The current restructuring is estimated to save the company roughly INR 5 crore annually in salary expenses. A spokesperson for Adda247 described the changes as a necessary evolution for a scaling business. "As we scale and our user base grows, we regularly evaluate how our teams, structures, and goals are aligned to serve our customers better,” the spokesperson said. "As part of this process, we made some structural adjustments across the organisation to sharpen our focus, improve execution, and ensure we build around our learners' needs," the spokesperson added.

Market Context and Industry Pressures

The edtech sector in India continues to navigate a challenging landscape following the post-pandemic funding slowdown. Adda247, which has raised approximately USD 67 million to date from investors including Google, WestBridge Capital, and Info Edge, is not alone in its efforts to prioritise financial discipline. Despite the recent workforce reduction, the company maintains that its overall headcount has remained "broadly stable" over the past year due to selective hiring in key growth roles. The firm continues to provide preparation for over 500 competitive exams and remains focused on its core mission of serving students in tier 2 and tier 3 cities. Porsche Layoffs: German Automaker To Cut Over 500 Jobs and Shut Down 3 Subsidiaries.

"Our overall team size has remained broadly stable over the past year, and we continue to hire selectively across key roles that directly strengthen our ability to serve our users," the district spokesperson added. "We remain committed to supporting all impacted employees in line with their contracts and applicable policies," the spokesperson said.

(The above story first appeared on LatestLY on May 11, 2026 11:49 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).