After the tech industry feels the pain of the global economic slump, top chief financial officers (CFOs) in the U.S, have warned about job cuts across the board in the education market over the next six months.
According to Coupa, a Cloud-based platform, in the study of 600 CFOs, 100% of CFOs in the education sector answered with “decrease staff” for steps they need to take in the next six to twelve months to promote growth in the case of a recession, according to Fox Business.
According to Zippia data, educational services in the United States shed 136,000 employees between June 2021 and June 2022.
EdTech layoffs in India
Coming to India, Edtech startups in India have laid off thousands of employees in the past year. Notably, SoftBank-backed Unacademy, Tiger Global-backed Vedantu, and edtech decacorn BYJU'S—valued at $22 billion—have all downsized their workforce.
In January this year, edtech startup Unacademy also laid off 20% of employees from its subsidiary, Relevel.
The layoffs come amid the ongoing funding winter due to which startups around the world are struggling to extend their runways and raise funding before going profitable.