Ed-tech Startup Scaler Implements Restructuring, Lays off 100-150 Employees

• ByStartupStory     |    April 11, 2024

Scaler, a leading ed-tech startup backed by Peak XV Partners, has announced the layoff of approximately 100-150 employees. The restructuring primarily affects roles within the marketing and sales departments and is part of the company’s annual evaluation to enhance efficiency.

Abhimanyu Saxena, Co-founder of Scaler, emphasized that the decision was not driven by performance but rather focused on aligning the workforce with the company’s evolving objectives. In a statement, Saxena stated, “As part of this restructuring, we identified some functions/roles, primarily in marketing and sales, in the company that we had to part ways with. I want to reiterate that this was not a performance-driven decision and assure all those affected are provided with the necessary support to ensure a smooth transition.”

The layoffs constitute approximately 10% of Scaler’s total workforce, which comprises 1,500 employees, including both full-time roles and contractual staff, consultants, and interns.

This move by Scaler comes in the wake of recent layoffs in the Indian ed-tech sector, with industry leader Byju’s terminating 500 employees earlier this month. Last year witnessed a significant uptick in layoffs within the ed-tech industry, with 17 startups letting go of 4,730 employees, according to data from layoffs.fyi. This trend coincided with a funding downturn, underscoring the need for operational optimization within the sector.

Scaler, founded by Abhimanyu Saxena and Anshuman Singh, offers tech-focused courses catering to working professionals seeking career upskilling opportunities. The company’s offerings include courses in software development and data science, addressing the growing demand for tech talent in the market.

Despite challenges, Scaler remains optimistic about its financial trajectory. Saxena had previously stated in an interview with FE that the company aims to achieve profitability by the end of the fiscal year 2023-24. With ambitions to attain net profit margins of 25-30% on a topline revenue of $150 million within the next eighteen months, Scaler is poised for further growth and market consolidation.

In the fiscal year 2022-23, Scaler reported a nearly doubled net loss of 330.3 crore compared to 174 crore in the preceding year. However, its operating revenue surged nearly fourfold to `316.7 crore, reflecting the company’s aggressive expansion and investment in scaling operations.

Scaler competes in a competitive landscape within the ed-tech sector, contending with established players such as General Assembly, Emeritus, Udacity, UpGrad, and Coursera. With a valuation of $710 million and backing from prominent investors including Peak XV Partners, Tiger Global, and Lightrock, Scaler continues to solidify its position as a key player in the upskilling domain.

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