Tech upskilling startup Scaler has laid off approximately 150 employees, citing long-term growth and sustainability reasons. This marks the first instance of layoffs at the Bengaluru-based company since its establishment in 2019.
Scaler co-founder Abhimanyu Saxena stated, “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.”
Saxena explained that as part of the restructuring, certain functions/roles, primarily in marketing and sales, were identified for reduction.
He emphasized that this decision was not based on performance and assured that all affected employees would receive necessary support for a smooth transition.
Moneycontrol first reported on this development.
Scaler specializes in upskilling college students and tech professionals, offering an intensive six-month computer science course through live classes conducted by tech leaders and subject matter experts.
The company has secured over $75 million in funding from investors such as Lightrock India Peak XV Partners and Tiger Global. Its most recent funding round was a $55 million Series B in February 2022, valuing the company at $750 million and positioning it on the brink of becoming the seventh unicorn in the edtech sector.
For the fiscal year ending March 2023, Scaler reported a 388% increase in revenue from operations, reaching Rs 317 crore from Rs 65 crore in FY22. However, the firm recorded a loss of Rs 330 crore in FY23, representing a 90% surge from Rs 174 crore in FY22.
Scaler competes with other upskilling platforms such as Newton School, Masai School, and Simplilearn.
According to data from startup intelligence platform TheKredible, more than 1,100 employees were laid off in the Indian startup ecosystem during the first quarter of 2024. Notably, foodtech company Swiggy topped the list with 350 layoffs, followed by Cult.fit, InMobi, and Pristyn Care with 150, 125, and 120 layoffs, respectively.
