CFOs warn about job cuts in education sector in next 6 months

SAN FRANCISCO: Top chief financial officers (CFOs) have warned about job cuts across the board in the education market over the next six months, as tech and media sectors bear the brunt of global economic slowdown.

According to a a survey of 600 CFOs by Coupa, a Cloud-based platform, 100 per cent of CFOs in the education sector responded with "reduce workforce" for actions they need to take in the next six to 12 months to drive growth in the event of a recession, reports Fox Business.

Data compiled by Zippia showed the educational services in the US lost 136,000 employees from June 2021 to June 2022.

Coupa CFO Tony Tiscornia was quoted as saying that the education industry's "workforce declines in the next half year to year will offset potential challenges in the event of a recession".

E-learning company Udemy cut 10 per cent of its workforce and Seattle Public Schools prepare for layoffs under a $131 million budget deficit, the report noted.

In India, nearly 23,000 employees have been laid off by 78 startups, including unicorns like BYJU'S, Ola, OYO, Meesho, MPL, Innovaccer, Udaan, Unacademy, Vedantu, Chargebee, Cars24, LEAD and others, according to leading startup news website Inc42.

Edtech companies laid off most employees, with 18 edtech startups firing more than 8,200 workers.

The US survey noted that other sectors most impacted include Communications with 60 per cent of the sector's CFOs pointing to layoffs as a solution.

According to the survey, only 20 per cent of CFOs in healthcare and accounting think layoffs are on the table over the next six to 12 months.