Edtech Platform Scaler removes 150 employees from Marketing & Sales Division

Edtech Platform Scaler removes 150 employees from Marketing & Sales Division

Tech Up skilling platform Scaler has recently laid off around 150 employees citing long-term growth and sustainability. The platform is famous for assisting college students and tech professionals. According to the sources, the company removed its 150 employees from marketing and sales functions.

In a media statement Scaler cofounder Abhimanyu Saxena, mentioned, “At Scaler, we’ve always believed that education is a primary human need, and tech education, more so. It is imperative that we look at how we operate for long-term growth and sustainability. As part of this, we have designed a new way of working to be able to achieve sustainable growth while delivering the best learning experience and outcomes for our learners – something that we’ve always been committed to.”

He also added, “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.” He said that, the decision was not performance driven and they also assured that, the employees who lost their jobs will be provided with necessary support to ensure a smooth transition.

The laid off employees constitutes 17% of the total workforce.  Scaler employs a total of about 1,400 staff including part-time workers, contractual employees and interns.

The Bengaluru based edtech platform offers an intensive six-month computer science course through live classes delivered by tech leaders and subject matter experts. Total expenses at the firm had gone up by 2.7X to 654.6 crore, significantly pushed up by employee expenses of 322.07 crore in the financial year ended March 2023. It had however also reported a 4.8X increase in yearly operational revenue to 316.7 crore during the period in which it raised no external capital.

During April 2023, the company has launched  The Scaler School of Technology, which is a four year residential undergraduate computer science program designed for the next generation of India's software professionals. Previously, the firm has raised over $75 million across rounds from the likes of Lightrock India Peak XV Partners and Tiger Global. The firm last raised $55 million in Series B in February 2022 at a valuation of $750 million and was on the verge of becoming seventh unicorn from the edtech space.

For FY23, the company’s revenue from operations increased 388% to 317 crore from 65 crore in FY22. The firm recorded a loss of 330 crore in FY23, a 90% surge from 174 crore in FY22. In the upcoming days, Scaler announced the acquisition of Delhi-based education platform Pepcoding for an undisclosed amount to strengthen its business ecosystem.