Outschool

In December 2022, the edtech unicorn Outschool conducted its second round of layoffs for the year, letting go of 43 employees, which represented a quarter of its staff. The company, which was last valued at $3 billion, cited a dramatic slowdown in growth as students returned to in-person schooling and a challenging funding environment marked by recession fears and higher investor demands for profitability. This followed an earlier layoff in July that affected 18% of its workforce, underscoring the broader struggles within the once high-flying edtech sector.

Outschool, a $3 billion-valued marketplace for virtual after-school programs, laid off 31 employees, representing 18% of its workforce, in June 2022. The company, which had grown rapidly to 164 employees after raising multiple funding rounds in a short period, cited shifting market conditions as the reason. CEO Amir Nathoo stated the move was a defensive measure to optimize operations, impacting all teams including leadership. Despite the layoffs, the company asserted it maintains over three years of financial runway. This event highlights the challenges faced by growth-stage edtech startups in adapting to changing economic environments.