Udemy, a San Francisco company that sells online educational courses and training, is laying off about 280 employees but will fill some positions in “lower-cost locations.”
The education technology company announced the measures in a filing with the Securities and Exchange Commission on Monday, which represents a sizeable cut of about 20%. Udemy reported having 1,443 full-time employees worldwide as of December, despite planning layoffs of 10% in February 2023.
The new layoffs follow a “strategic business update” Udemy issued in July along with news that it had lost $50 million in the first half of the year. The company vowed to shift its focus to larger customers and increase efficiency, in part by “reallocating resources.” In an SEC filing on Monday announcing the new layoffs, Udemy detailed its thinking: “We intend to rehire approximately half of the impacted positions, primarily in lower-cost locations.”
Udemy spokesman Paxton Mittelman said in an email to SFGATE on Friday that more than 60% of the company’s business comes from outside the U.S., and that the shift to cheaper locations will include both open positions and existing teams.
“We have undertaken this restructuring to position our company to remain durable and competitive in the future,” Mittleman wrote. “While we have no current plans for additional job cuts, we cannot guarantee future market conditions or business developments.”
She added that employees were notified on Sept. 12 whether they would be laid off, but the actual reductions and redeployments would take place in the last three months of 2024 and the first three months of 2025. “Affected udemates” would be supported with severance pay and continued health insurance, she said.
Mittleman did not respond to SFGATE’s questions about the roles and locations of the employees affected by the layoffs. Udemy is headquartered in San Francisco’s SoMa district, with additional offices in Denver, Austin, India, Australia, Ireland and Turkey.
Udemy touted 69 million “learners” worldwide in a late 2023 SEC filing, and while revenue has grown over the past few years, profits have stagnated. The company’s shares have fallen 40% since the beginning of 2024, and its valuation is currently hovering around $1.2 billion.
Editor’s note: This story was updated at 5:12 p.m. on Sept. 20 to correct the pronouns used by a Udemy spokesperson.
Hearing about something happening at Udemy or other Bay Area tech companies? Contact tech reporter Stephen Council securely at stephen.council@sfgate.com or Signal at 628-204-5452.
