The layoffs will impact about 10 percent of the total workforce in the marketing and sales department of the company.
PhysicsWallah and Scaler are among the highly valued tech startups that have launched such ‘new-age’ colleges, taking on top tech institutions. Bootstrapped startup Masters’ Union introduced the idea of a modern college.
By integrating ChatGPT functionalities into the Scaler academy programme, the tech upskilling ‘soonicorn’ aims to reduce the doubt resolution turnaround time of the learners and enhance their learning outcomes.
Post the transaction, Pepcoding's entire team has merged with Scaler and its co-founder Sumeet Malik has joined the merged platform as an instructor and content creator to help improve the learner experience, especially in the Low-Level Design (LLD) curriculum, Scaler said.
Nearly 6,000 have been let go so far in 2023. Worse, the number of startups that resorted to downsizing is up almost five times from the same period last year, when only eight startups had axed jobs.
Abhimanyu Saxena believes the foray will impact the company’s bottom line positively.
Scaler did not reveal the amount it plans to invest in the new initiative, but its two co-founders said that they expect it to become one of the biggest verticals for Scaler soon.
The upskilling platform said the company-wide year-end shutdown is to offer ‘gratitude’ to employees for their efforts throughout the year that turned out to be a struggle for Indian edtech companies.
Spending on the advertising and marketing front and offers like free trials, especially in the early days, are hurting companies. The higher education and upskilling space seems to be faring better.
Scaler's growth projections and profitability expectations come at a time when edtech startups in the country are aggressively conserving cash as funding to the sector has dried up
The company said it will recruit staff across the sales, business-to-business (B2B) enterprise, instructors, and operations teams. According to Scaler, it currently has over 1,800 employees, and the hiring spree will expand its workforce by 35 percent.
The slowing demand for technology-based education services, coupled with the much-talked-about funding winter, has had a domino effect on India's thriving edtech companies, forcing them to lay off employees, go slow on expansion, cut down excess spends and explore newer revenue streams. Some edtech companies have even shut operations
Abhimanyu Saxena, Scaler's co-founder, said that company's strategy behind its potential acquisitions will be largely revolving around aquihiring and distribution of its courses.
Sclaer co-founder says only with more start-ups and larger organisations introducing similar initiatives, a workspace can convert to a platform where all the employees feel valued and heard.
Earlier this year, Scaler raised $20 million in Series A Funding led by investors such as Sequoia Capital, Tiger Global and Rocket Internet, among others.
Scaler has recently acquired New Delhi-based online learning platform Coding Elements in an all-cash deal worth roughly Rs 80 million. Scaler Academy has also set aside a fund corpus of Rs500 million for acquisitions.