Cuemath Announces Another Round of Layoffs Amid Challenging Edtech Landscape
Cuemath, the online math learning platform, has announced another round of layoffs, affecting 100 employees, due to the challenging macroeconomic conditions impacting the edtech industry. This decision comes as the company grapples with diverging revenue and cost projections, aggravated by the current capital availability constraints, particularly within the edtech sector.
In an email dated August 25, Cuemath’s Founder and CEO, Manan Khurma, addressed the workforce, acknowledging the need for a leaner team structure to navigate these challenges. Khurma stated, “This means that we will have to move to a leaner team structure, in which some roles will get redundant. That exercise is being carried out today.”
This recent round of layoffs follows a previous one in May when the company let go of approximately 100 employees to enhance operational efficiencies in response to the deteriorating global landscape for K-12 edtech.
Khurma reflected on the situation, saying, “Post the May 8 exits, I had said that hopefully the company will not need to take a similar action again. And at that point, I had full conviction in saying that. But clearly, I had underestimated the extent of the turnaround required to get the company into a healthy situation.”
He further elaborated, “For what it’s worth, I and our leadership team worked very hard in the last few weeks to avoid this outcome. But we’ve come to the conclusion that we still have a long way to go and this action is inevitable.”
Cuemath, founded in 2013 by Manan and Jagjit Rai Khurma, offers an after-school online math program designed for students in grades K-12.
These layoffs align with a broader trend in the startup ecosystem, where a scarcity of venture capital funding has resulted in cutbacks, particularly among late-stage organizations.