San Francisco, September 18: US-based edtech firm Udemy is planning to announce its new round of layoffs as a part of a restructuring plan. The Udemy layoffs will reportedly affect 280 employees, half of which will be rehired by the company for lower-cost locations. Last year, Udemy laid off around 10% of its workforce starting from February 2023 till the end of the year. 

According to a report by MarketWatch, Udemy will lay off its employees as part of its turnaround plan, which will be completed by March 2025. The report said that 280 employees would be affected by the job cuts decision due to the company's focus on restructuring its business. Cisco Layoffs: US Tech Giant Laying Off Around 5,600 Employees, 7% of Its Workforce To Focus on AI, Automation and Cloud for Future Growth.

The Udemy's restructuring process will reportedly cost it around USD 16 million to USD 19 million. According to the Stock Analysis website, Udemy employed 1,443 employees as of December 31, 2023. Therefore, the latest round of Udemy layoffs, affecting 280 individuals, will likely reduce around 19-20% of the company's workforce.

Udemy has initiated reducing its headcount because it witnessed a 40% decline in its market capitalisation in 2024. The company recorded a USD 194.4 million revenue in Q2 2024. The report highlighted that Udemy, for the first time, experienced such a "quarter-over-quarter" revenue drop. It also said that the prime reason for the company's poor performance was its consumer revenues. 

According to a post by Class Central website, In Q1 2024, Udemy's consumer revenues decreased to USD 73.8 million from USD 79.2 million. This year,  tech layoffs have affected thousands of people in the IT industry. Specifically, several major leaders in the edtech industry reduced their workforce amid restructuring and cost-cutting. Verizon Layoffs: US-Based Telecom Giant to Cut Nearly 5,000 Jobs amid Cost-cutting and Reorganisation.

BYJU's laid off hundred of employees this year without letting them serve notice periods and also shut down offices. Another major layoff in the tech sector was announced by Bengaluru-based Scaler, which affected 10% of its total workforce amid restructuring. The Unacademy Layoff announced in June had cut 250 jobs from the product, sales, and marketing departments.

(The above story first appeared on LatestLY on Sep 18, 2024 02:32 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).