[ad_1]
MasterClass, the high-profile educational tech startup featuring such classes as Steph Curry on ball-handling and shooting, Mariah Carey on “the voice as an instrument” and Roy Choi on “intuitive cooking,” has laid off about 120 employees — or approximately 20% of its staff.
CEO David Rogier posted the news on Twitter and LinkedIn on Wednesday morning, writing that the cutbacks are a way for the company “to adapt to the worsening macro environment and get to self sustainability faster.” These layoffs continue a trend across the tech industry, with heavyweights and newcomers alike struggling to adapt to unfavorable market headwinds and a new stage of the pandemic.
Of the 120 people across the company who were laid off, TechCrunch first reported and SFGATE confirmed with a spokesperson, no C-suite individuals were laid off.
With a slew of buzzy ad campaigns and multiple “Saturday Night Live” sketches, the company’s growth accelerated during the pandemic as people sought to use their time quarantining productively. In 2021, MasterClass received a valuation of $2.5 billion during a funding round.
Access to the classes costs $180 a year; TechCrunch notes that subscriptions, as of late, comprise 100% of its revenue.
The company will not be undergoing a hiring freeze, nor will it cease rolling out its ritzy celebrity-branded educational content, a spokesperson said. It is unclear how much instructors get paid, but Bloomberg reported in 2018 that they get an initial payment and “as much as 25 percent of revenue.”
Affected staff were notified Wednesday, a spokesperson told SFGATE, and employees will receive 11 weeks of base pay and one additional week for every year they’ve been with the company. Health care and stock benefits will also reportedly remain in effect for at least two months, with the company paying for COBRA through the end of the year. Mental health and career counseling is also available, the spokesperson said.
“This very tough step will strengthen our position both financially and strategically, allowing us to serve our members, employees and instructors for many years to come,” Rogier said.
[ad_2]
Source link