Employees have been worried about the massive layoffs carried out by several big companies. Employees affected are reaching out to startups for placements. Several companies and startups have been flooded with resumes, especially from edtech field. 2022 has been a year of massive layoffs since companies have been looking at cost-cutting considering the number of employees being let go. According to reports, 1,20,699 people lost their jobs in 2022 till date.
The need to find a job is definitely crucial for these candidates and it is needless to say since the economic conditions are in turmoil. Candidates are willing to accept pay cuts of 20 to 40%. It was not only big tech companies but several edtech companies too who were equally hit especially after the Russia-Ukraine war which led to a rise in inflation worldwide. Byjus which is India’s topmost edtech company let go of about 5% of its employees and Unacademy sacked about 350 employees.
Anshuman Das, managing partner of executive search firm Longhouse Consulting said “The edtech sector didn’t factor in the possibility that things might move back to a physical model after the pandemic. Now they are suffering the consequences,” further adding that there was a case of a former top executive at an affected edtech firm who made Rs 3 crore plus in cash which was 3 times the amount in ESOPs. In the beginning, he was not willing to compromise on his salary although now he is willing to settle for the same.
In the edtech sector teachers have suffered the most while sales & marketing, product developers, and contractual staff were also affected. There was a time when the edtech sector was recruiting people with a 40 to 50% hike in salaries as the sector was showing rapid growth. “I believe the edtech sector will have to take a few pro-employee steps like outplacement for laid-off employees to protect their image for the future,” Anshuman Das added.