As the US media site “Business Insider” reported, citing internal sources, 400 to 600 employees could be affected this time. As early as September, the rapidly growing company announced that it would reduce its workforce from 1,800 to 1,600 by the end of 2022. An APA request to the company’s press department went unanswered.
According to “Business Insider”, the workforce is also speculating about how many employees will be made redundant. Screenshots available to the news site show that the number of members on the communication channel “Slack” fell by 370 in two days. Another information session is said to be planned for tomorrow, Tuesday.
In an internal video conference, co-founder and CEO Felix Ohswald spoke of a difficult economic environment and a weakening consumer climate, according to “Business Insider” last Thursday. The austerity course that was introduced three months ago is not enough.
“We had our first changes in September of this year when we revised our goals for 2023,” quoted the news portal Ohswald. “We really felt at that point that we had done enough given the information we had at the time.”
Ohswald said the economic environment has “deteriorated significantly” since then and the company needs to “review growth targets for 2022 and 2023.” Among other things, GoStudent plans to close its offices in Latin America and Canada.
GoStudent had risen like a rocket with online tutoring in the corona pandemic and was valued at EUR 1.4 billion in June 2021 when investors Softbank and Tencent entered the company. In January 2022, another round of financing increased the value to EUR 3 billion.
From a valuation of 1 billion dollars, the start-up industry speaks of a unicorn. Austria’s first “unicorn”, the crypto exchange Bitpanda, is currently struggling with problems and has had to lay off hundreds of employees.
Since the investors got involved, GoStudent has bought up other tutoring companies, most recently Studienkreis in the German-speaking region. SchoolFox has also been part of GoStudent since 2021.
The company’s goal was to roll out its business model of providing video-based one-to-one lessons between tutors and students worldwide and to become the world market leader in digital educational offerings.
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