Course Hero, the tutoring company previously valued by investors at $3.6 billion, has conducted its first layoffs in 17 years, affecting 15% of its staff, or 42 individuals.
Confirming the staff reduction, a Course Hero spokesperson stated that it is a strategic move to position the business for future growth, reported TechCrunch. The company added that it does not foresee any further layoffs.
“Part of this transition support includes providing several months of severance, health care benefits through the end of June, outplacement, and, immigration support services, and we are working with individuals with special circumstances to make sure we do everything we can to ease their transition,” a spokesperson said.
The downsizing of employees happened subsequent to Course Hero experiencing a change in leadership. Its co-founder, Andrew Grauer, stepped down from the position of CEO four months ago. Subsequently, Course Hero was acquired by Learneo, a parent company that valued it in billions of dollars and appointed Grauer as its CEO.
John Peacock, who previously held the position of VP of product at the company, took over as the successor of the previous CEO. Recently, Peacock made one of his initial major alterations to the company by carrying out a layoff. He informed the staff about this decision via an email sent this week.
“This is the first time in Course Hero’s 17 years that we have done a layoff of this size, and it’s not a decision we made lightly. It follows careful deliberation with the leadership team about the moment we’re in,” read the email obtained by TechCrunch.
He further stated that the layoff was essential for the company's future as the industry is constantly changing and adapting, and it was imperative to keep up with these changes.
Course Hero, founded in 2006, shied away from venture capital funding until recently. It took eight years for the company to secure $15 million in a Series A funding round. Subsequently, after nearly six years without raising any venture capital, Course Hero obtained financing through two rounds in 2020.