Udemy, the world’s largest online learning marketplace, plans to eliminate 280 jobs, roughly 20% of its workforce. The company then expects to refill about half those roles in cheaper labor markets.
The San Francisco based firm disclosed the cuts in a regulatory filing last week. It follows a restructuring plan announced during its second quarter earnings call in July. That plan centered on stripping away management layers to boost efficiency.
A regulatory filing shows Udemy will rehire around 50% of the eliminated positions, mainly in lower cost regions. The move will cost between $16 million and $19 million, mostly for severance payouts.
Those costs will hit between the third fiscal quarter of 2024 and the first quarter of 2025. Management wants the restructuring finished by March 31.
Financial results for the second quarter tell a mixed story. Total revenue climbed 9% year over year to $194.4 million. That growth came despite a 2 percentage point currency exchange headwind.
Enterprise revenue jumped 19% to $120.6 million. Annual recurring revenue rose 17% to $492.6 million.
But the consumer side struggled. Consumer revenue fell 4% to $73.8 million. Foreign exchange rates knocked 3 percentage points off that figure.
Udemy ended the quarter with $422.1 million in cash and equivalents.
CEO Greg Brown framed the cuts as a strategic pivot. He said the company needs to shift focus and resources upmarket. That’s where leadership sees the strongest growth potential and quicker profitability.
The layoffs mark the second major workforce reduction in consecutive years. A previous round last year trimmed about 10% of staff. Annual filings show Udemy employed 1,443 full time workers at the end of 2023.
The restructuring signals a broader effort to reshape operations around enterprise clients while cutting costs elsewhere. Whether that strategy pays off will become clearer in coming quarters.
