Simplilearn Reduces Workforce by 200 Amidst Performance Concerns, Reflecting Broader Edtech Industry Challenges
Summary – Simplilearn Layoffs
- Simplilearn, a Bengaluru-based edtech startup, laid off around 200 employees due to poor performance.
- The layoffs impacted various levels, particularly the sales team, and also affected marketing and operations.
- The downsizing process began with vice-president-level positions.
- Affected employees claim the layoffs were abrupt and lacked prior performance reviews.
- Simplilearn acknowledges performance-based exits while continuing to hire as needed.
Simplilearn, an edtech startup based in Bengaluru, has recently laid off approximately 200 employees, attributing the decision to poor performance. The company, supported by Blackstone, saw this reduction in workforce across various departments, predominantly within their sales team, but also impacting marketing and operations.
The process of downsizing commenced last week, beginning with roles at the vice-president level. Despite Simplilearn’s statement that these terminations were performance-related, several affected employees have expressed that the layoffs were abrupt, highlighting the lack of recent performance evaluations.
An anonymous employee shared, “The layoffs came without warning. The company cited poor performance as the reason, but no prior performance reviews were conducted. This has put additional pressure on the remaining employees to increase sales.”
The procedure for the layoffs involved unexpected one-on-one meetings with the human resources department, where employees were informed of their termination.
A Simplilearn spokesperson commented on the layoffs without specifying numbers, acknowledging that performance-based exits are part of the business which continues to hire based on need. “Our business is progressing according to plan, and while performance-based exits are a reality, we continue to recruit where necessary,” said the spokesperson.
Simplilearn, founded in 2010 by Krishna Kumar, specializes in online upskilling courses across various domains including cyber security, cloud computing, and data science, in collaboration with prominent institutions and corporations like IBM, Microsoft, and Amazon.
Following Blackstone’s majority stake acquisition in 2021 for $250 million, Simplilearn raised an additional $45 million in funding from GSV Ventures last year. Despite these financial milestones, the company reported a substantial increase in net loss to INR 149.9 Cr in FY22 from INR 5.6 Cr in the previous year, while revenue grew to INR 492.8 Cr.
This development is part of a larger trend in the edtech sector, which has seen significant layoffs, totaling nearly 10,000 since early 2022. Similar actions were taken by edtech unicorn PhysicsWallah, which laid off 70-120 employees recently, citing performance issues.
