Cuemath

Edtech startup Cuemath has laid off approximately 100 employees in a recent restructuring effort to reduce costs, marking the second round of layoffs this year after a similar cut of about 100 staff in May. The company, which offers K-12 mathematics courses globally and is backed by investors like Google and Peak XV Partners, cited a challenging macroeconomic environment and a persistent gap between revenue and cost expectations as key reasons. CEO Manan Khurma communicated the decision via email on August 25, acknowledging that previous turnaround efforts fell short. This move reflects broader pressures in the edtech industry, where funding constraints have led to multiple startups downsizing. Cuemath reported a net loss of over INR 216 crore in FY22, with employee expenses constituting a significant portion of its costs.

In May 2023, the Sequoia-backed edtech company Cuemath laid off approximately 100 employees across various departments, including marketing, technology, product, and operations. This workforce reduction occurred amid a broader "funding winter" impacting the edtech industry, as companies like Cuemath sought to cut costs and extend their financial runway. Concurrently, the company announced a leadership transition, with co-founder Manan Khurma resuming the CEO role while former CEO Vivek Sundar moved to an advisory position. Headquartered in Bengaluru and valued around $400 million, Cuemath specializes in one-on-one math tutoring for K-12 students. Despite reporting significant revenue growth, the company also faced escalating losses, contributing to the decision to restructure.