Those affected made up about 17% of the 900 full-time employees at the Bengaluru-based startup, one of the sources told ET. Scaler employs a total of about 1,400 staff including part-time workers, contractual employees and interns, the source added.
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The company, which confirmed the development, attributed the job cuts to its need for long-term growth and sustainability. While it did not comment on the number of those affected, it said the decision was not performance-driven.
“We have designed a new way of working to be able to achieve sustainable growth while delivering the best learning experience and outcomes for our learners – something that we’ve always been committed to. As part of this restructuring, we identified some functions/roles, primarily in marketing and sales, in the company that we had to part ways with,” cofounder Abhimanyu Saxena told ET.
Total expenses at the firm had gone up by 2.7X to Rs 654.6 crore, significantly pushed up by employee expenses of Rs 322.07 crore in the financial year ended March 2023. It had however also reported a 4.8X increase in yearly operational revenue to Rs 316.7 crore during the period in which it raised no external capital.
The development was first reported by news website Moneycontrol.
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In April 2023, the company announced the launch of Scaler School of Technology, a four-year residential undergraduate computer science programme designed for the next generation of India’s software professionals.In the following month, Scaler announced the acquisition of Delhi-based education platform Pepcoding for an undisclosed amount to strengthen its business ecosystem. This was the company’s fourth acquisition – after AppliedRoots, Coding Minutes, and Coding Elements – over 2022 and 2023.
Last year, Scaler achieved positive cash flow and was profitable in the July-September quarter. The aim for 2024 was to maintain that over the next few quarters and lead to annual profitability, the company had said while announcing the appointment of Tapan Jindal as chief financial officer, in January 2024.