Last month, I reported that Udemy hinted at layoffs in their earnings report without explicitly using the term. Now, the company has released more concrete details about its restructuring plan.

Key Points:

• Approximately 280 employees (20% of the global workforce) will be affected.
• Udemy plans to rehire about half of these positions in lower-cost locations.
• The restructuring is expected to cost between $16 million and $19 million.
• The plan is set to be completed by March 31, 2025.

As of December 31, 2023, Udemy had 1,443 full-time employees. The last known Udemy layoffs occurred in February 2023, where I estimated that 200 staff were laid off.

This move follows a significant market cap decline of around 40% in 2024. Udemy’s 2024 Q2 revenue of $194.4 million fell below its first-quarter revenue, marking the first time the company has experienced a quarter-over-quarter revenue drop. The primary culprit was Udemy’s Consumer revenues, which decreased from $79.2 million in 2024 Q1 to $73.8 million.

This is despite the boost Udemy received last year when it announced plans to reduce the instructor share from 25% to 15% by 2026, with the first adjustment to 20% effective as of January 1, 2024.

At that announcement, the stock price has jumped by more than 50%, bringing the market cap to $2.1 billion. At the time of publishing, Udemy’s market cap was $1.20 billion.