Laid-off employees are looking for internships, startups; willing to take 20-40% pay cuts

Layoffs: laid-off employees seek internships and startups

Photo: iStock

New Delhi: 2022 will go down in history as it will be remembered for the massive number of layoffs that took place this year. As companies around the world consider cost-cutting measures, it’s no secret that thousands of employees have been laid off this year. As many as 1,20,699 people have lost their jobs globally so far this year, according to Layoffs.fyi.
Not only tech, but the edtech sector was also hit by the Covid pandemic and then the Russian-Ukrainian war which led to a sudden spike in inflation. Byju, India’s most popular edtech startup, recently cut 5% of jobs and Unacademy, on the other hand, also laid off 350 employees in the third round of layoffs this year.

Left jobless, laid-off professionals and concerned employees of affected companies are approaching startups and looking for internships. Staffing firms as well as startups that are still in recruiting mode have seen an increase in calls and resumes from edtech professionals.

The desperation to land a job is evident as many applicants are even willing to take 20-40% pay cuts, according to employment consultants quoted by the Economic Times. At the higher level, it could increase, even more, taking into account the value of ESOPs.

“The edtech industry has not considered the possibility of things going back to a physical model after the pandemic. Now they are suffering the consequences,” Anshuman Das, managing partner at executive search firm Longhouse Consulting, told the publication.

Das shared the case of a former executive executed at an affected edtech company who earned Rs 3 crore more in cash closer to three times the amount in ESOP. Initially unwilling to compromise on his salary, he is now willing to settle for a cut.

In edtech companies, technology, sales and marketing, content, product developers, teachers, and contract staff like testers have all been affected, but the former two have comparatively more opportunities. Teachers are among the most affected.

Many arrived at 40-50% ups when the sector was booming and are now left dry, Das said.

Recruitment firm Michael Page has seen an almost 60% increase in applications from the edtech sector. The laid-off employees are even willing to take other jobs with pay cuts of 30 to 35 percent, said Pranshu Upadhyay, regional director and head of technology practice in India. “I think the edtech industry will have to take some employee-friendly measures, like outplacement for laid-off employees to protect their image for the future,” he added.
The edtech sector is estimated to have seen around 7,000 layoffs at companies such as Byju’s, Unacademy, Vedantu, Lido Learning and FrontRow as it sees a steep drop from pandemic highs when the world went online . Companies in the K12 segment are the most affected segment, while higher education is better off.
UpGrad co-founder Mayank Kumar also sees an average of five to seven professionals contacting him daily. The online higher education company expects to hire about 1,000 professionals, mostly in sales, over the next two quarters. “There is rationalization in the crazy salaries we were seeing. People are ready to move on fixed salaries, even to accept reductions,” he explained.

Live-learning edtech BrightChamps is also hiring and plans to increase both full-time employees and increase the number of teacher hires by 3,000 to 5,000 over the next 1-1.5 years. . “We’ve seen people in edtech reach out, but domain exposure alone isn’t a qualifier. Our recruiting bar is very high,” said Kanika Mendiratta, Senior Director, People Experience at BrightChamps.

Comments are closed.