After the crypto platform Bitpanda, lower growth than initially expected is now causing significant job losses at the tutoring start-up GoStudent. The learning platform will cut about ten percent of its staff. “In the middle of the year we had about 1800 people, by the end of the year we will have around 1600 people,” co-founder and CEO Felix Ohswald announced on Thursday.
Not only Vienna is affected, but all locations worldwide, Ohswald said in an interview with “Trending Topics”. In addition, the company will discontinue its US operations, which started only this year, and will begin managing the US operations from Canada. In the future, the focus will be on the core markets of Germany, Austria and Switzerland, France, Great Britain, Italy and Spain.
GoStudent originally forecast 250 percent growth for the coming year. “We have now reduced that to 80 percent,” Ohswald says. Access to capital has become more difficult. Bitpanda also announced staff cuts in late June due to poor business prospects. The number of employees there must be reduced from more than 1,000 to 730.
education tree
Despite the current challenges in the market, Ohswald sees the learning platform as highly resilient to crises. Demand remains very strong. “The education profession is currently booming (…). There is also a major teacher shortage, which is why many companies try to present innovative solutions here.” There is always a small portion of customers who stop paying. “But we haven’t seen a significant increase here yet,” Ohswald says.
negative headlines
The tutoring startup has been in the news again and again lately. Allegations of abuse against one of her teachers only became public in August. The teacher allegedly harassed a student on the online tutoring platform. Ohswald: “As soon as we heard about this case, we immediately did everything in our power and immediately separated ourselves from the respective tutor. We also offered the parents and psychological support, as well as support by means of a statement of fact to the OM We have also started incorporating new assurance principles.”
Before that, the focus was also on the working conditions within the company. Current and former teachers had made serious accusations. “We always take seriously any reproach from teachers. We also do ongoing feedback rounds with the teachers and families,” says Ohswald.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
