In November 2023, unicorn edtech company Multiverse announced plans to lay off nearly a third of its US employees after missing revenue targets in the country. This decision will affect up to 44 employees, as the company's US market strategy has not evolved quickly enough. In this article, we'll discuss what happened, why it happened, and the potential future impact of these layoffs on Multiverse and the edtech industry.
The layoffs at Multiverse were primarily driven by missed revenue targets in the US market, as the company's strategy did not evolve quickly enough to meet the demands of the market. According to CEO Euan Blair, the company had more staff than needed due to slower-than-expected growth in the US. The decision to lay off 44 employees, which accounts for around 5% of the total workforce, was described by Blair as the "toughest decision" he has made to date.
While the company's net loss increased to £40.5 million in the year to March, Blair stated that such losses were "perfectly normal for a company at our stage." The layoffs come after Multiverse shifted its focus away from apprenticeships and towards upskilling employees for corporate clients, indicating a possible internal restructuring to better align with market demands. However, no specific insights from industry analysts or broader industry trends were mentioned in the sources.
While the exact financial impact of the layoffs remains undisclosed, Multiverse's recent shift in focus from apprenticeships to upskilling employees for corporate clients suggests a strategic realignment to better serve market demands. This change in direction, coupled with the layoffs, could potentially lead to cost savings and improved financial health for the company in the long run.
Multiverse plans to modify its apprenticeship offerings in the US, further indicating a commitment to adapt and optimize its approach for continued growth. By concentrating on providing digital skills training for corporate clients, the company may be better positioned for future success in the evolving edtech landscape.
The layoffs at Multiverse, a prominent edtech company, may signal challenges within the education industry, particularly in the US market. As the company shifts its focus from apprenticeships to upskilling employees for corporate clients, this could indicate a broader trend in the industry towards catering to the evolving needs of businesses.
The need for greater localization and customization of services, as suggested by Multiverse's potential changes to its US apprenticeship offerings, highlights the importance of adapting to different markets. While the layoffs may negatively impact employee morale and the company's reputation, they could also serve as a catalyst for Multiverse and other edtech companies to reassess their strategies and better align with industry dynamics.
Multiverse's layoffs stem from missed revenue targets and a need to realign with market demands, as the company shifts focus from apprenticeships to upskilling employees for corporate clients. These developments could signal challenges within the edtech industry and highlight the importance of adapting to different markets. The layoffs may impact Multiverse's reputation and employee morale, but could also prompt the company and others in the sector to reassess their strategies for future success.
