Edtech

Simplilearn, Backed by Blackstone, Terminates 200 Employees Citing Performance Issues

• ByStartupStory     |    December 7, 2023

Bengaluru-based edtech startup Simplilearn has reportedly terminated approximately 200 employees, citing poor performance as the reason, according to sources familiar with the matter. The layoffs affected employees across various levels, with the sales team being the most impacted, alongside other departments such as marketing and operations. The downsizing initiative commenced last week, starting with layoffs at the vice-president level.

While Simplilearn communicated to the affected employees that their termination was based on performance issues, some of those impacted claim the layoffs were sudden, and the startup had not conducted recent performance reviews. Employees were reportedly called in for one-on-one interactions with the human resources department, where they were informed of their termination.

Responding to the reports, Simplilearn, without confirming the exact number of layoffs, acknowledged that performance-based exits do occur. A company spokesperson stated, “Our business is going as per the plan, we are hiring on a need basis across teams. Sometimes, performance-based exits do occur.”

Founded in 2010 by Krishna Kumar, Simplilearn offers online upskilling courses in areas such as cybersecurity, cloud computing, project management, and data science for students and working professionals. The startup collaborates with educational institutions and global organizations, including IBM, Microsoft, Amazon, Meta, and KPMG.

In 2021, private equity firm Blackstone acquired a majority stake in Simplilearn for $250 million. The startup raised $45 million in a funding round led by venture capital firm GSV Ventures last year. Simplilearn reported a consolidated net loss of INR 149.9 crore in FY22, a significant increase from INR 5.6 crore in the previous fiscal year. The total revenue stood at INR 492.8 crore, compared to INR 346 crore in FY21.

These layoffs in the edtech sector come amid challenging times for the industry, which has witnessed significant workforce reductions since the beginning of 2022. Edtech unicorn PhysicsWallah recently laid off around 70-120 employees, citing performance issues as the reason, despite reports suggesting a cost-cutting exercise. The broader trend reflects the impact of the ongoing funding constraints on edtech startups.

Follow Startup Story