A cutting-edge tutoring company, Course Hero has announced its first round of layoffs in seventeen years. The company has reportedly slashed 15% of its staff, or forty-two people. The layoffs come as Course Hero looks to reel in costs while also maintaining profitability.
The Course Hero workforce reduction comes as the company faces challenges in its main business: the traditional education sector. Course Hero is a rare edtech unicorn, but its CEO Andrew Grauer has left his post four months ago and been replaced by John Peacock. Peacock sent an email to staff explaining the changes this week, and according to The Wall Street Journal, layoffs are expected to occur in departments such as product and marketing. The workforce reduction may be one of the new CEO’s first significant changes since taking over, raising some doubts about whether it will be enough to revive flagging sales .
Course Hero has been facing some financial challenges and decided to layoff a portion of their staff. This decision follows careful deliberation with the leadership team about the moment they’re in and how it will help build the future of their company.
TheCourseHero’s successful history with venture capital suggests that the company has high potential, but its slow pace of fundraising in recent years may be a sign that market conditions are not right at the moment. Given the cyclical nature of venture capital, Course Hero may yet find a partner who is willing to invest in it once again soon.
Course Hero’s meteoric rise in valuation and acquisitions shows no signs of slowing down, as the company looks to expand its reach into new markets and increase its domination over the course-rotation industry. With a market cap of $3.6 billion, Course Hero is one of the most valuable edtech companies in the world, and it looks poised to keep growing at an even faster pace in future years.
Since leaving TechGround, Grauer has become CEO of Learneo. As the founder and former CEO of TechGround, Grauer is no stranger to the risks and rewards of rapid capitalization. He now has a unique perspective on the industry as he oversees one of the largest automated learning companies in the world.
The Course Hero business has been cash flow positive and profitable on an adjusted EBITDA basis for over five years. In response to market conditions, the company announced a round of layoffs in 2021. The business continues to grow and is looking forward to continued success in the years ahead.
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