Teachmint Announces Second Round Of Layoffs, Cuts 70 More Jobs

Edtech company Teachmint has announced a second round of layoff within six months impacting 70 employees. The company cites cost reduction as the reason for the layoff and aims to streamline its operations by eliminating role redundancies. This is the second round of layoffs in six months; earlier 45 employees were fired in November 2022.

Teachmint's co-founder and CEO, Mihir Gupta, discussed the layoffs during a town hall meeting on May 4. Gupta emphasised that the positions were eliminated because they were superfluous inside the organisation rather than because of poor performance. Teachmint has acknowledged the layoffs, but has not formally stated the precise number of employees that would be affected.

According to the statement, the impacted employees will receive three months of payroll assistance, ongoing access to mental health counselling, six months of continued health insurance benefits for themselves and their families, outplacement assistance and an acceleration of the nine-month vesting period for eligible stock options.

Teachmint has now fired more than 110 personnel since laying off 45 people in December 2021 with this latest round of layoffs. The business is following the lead of other edtech businesses including Unacademy, Vedantu, and Byju's, which have also carried out numerous rounds of layoffs.

The company's operating income for edtech in FY 2021-22 was Rs 80 lakhs, and it posted a loss of Rs 131.7 crore for the same fiscal year. The company bought four companies in 2021 to quickly grow and diversify its operations: MyClassCampus, Teachmore, Teachee's India team, and Airlearn.

Mihir Gupta, Payoj Jain, Divyansh Barodia, and Anshuman Kumar established Teachmint in 2020. It is a teaching platform with a focus on video that was created with the goal of digitising classrooms. A $500 million valuation was given to the startup at its most recent investment round of $118 million from international venture capital firms including Rocketship.VC, Vulcan, Better Capital, and Lightspeed Venture Partners.