Brainly, a global online learning community to layoff 30% of its workforce. The layoffs come as the company faces financial challenges and a slowdown in growth. The team currently comprises of around 400 employees, which could mean there are about 120 employees to be affected by the layoffs over the next month.
In an internal memo to employees, CEO Michał Borkowski said that the layoffs were necessary to “optimize our investment” and “ensure the long-term success of Brainly.” He added that the company is “not achieving the targets that would let us become breakeven by the end of the year without any cost cuts.”
Borkowski also said that the economy is “unforgiving right now” and that companies must focus on “survivability.” He added that Brainly is “not immune” to the economic challenges that are facing other businesses.
The layoffs will affect employees across all levels and functions at Brainly. The company said that it is providing severance packages and outplacement services to affected employees.
Brainly is not the only edtech company that has laid off employees in recent months. Other companies that have announced layoffs include Byju’s, Unacademy, and Vedantu.
The layoffs in the edtech sector are a sign of the challenges that the industry is facing. The sector has been growing rapidly in recent years, but it is now facing a number of headwinds, including rising competition, declining investment, and a slowdown in student enrollment.
It remains to be seen how the layoffs at Brainly will impact the company’s long-term prospects. However, the layoffs are a clear sign that the company is facing financial challenges and that it is taking steps to reduce costs.
Brainly is a global online learning community that was founded in 2009 in Kraków, Poland. The company has over 350 million registered users in over 180 countries. Brainly offers a variety of features that help students learn, including a question and answer forum, homework help, study guides, quizzes, and learning resources. Brainly is a free service for students, and the company generates revenue through advertising and premium features. Brainly is one of the leading edtech companies in the world, and it has raised over $100 million in funding from investors such as Prosus Ventures, General Catalyst, and GGV Capital. Brainly is headquartered in New York City, with offices in Kraków, Poland and San Francisco, California.