In a recent earnings report, Udemy announced a “Strategic Business Update” focusing on achieving $25 million in annualized structural cost-savings and targeting enterprise companies with more than 1,000 employees. This strategic shift includes reallocating resources and reducing organizational layers.
Despite the positive angle of cost-savings, these changes are indicative of potential layoffs within the company. In previous rounds of layoffs, Udemy estimated saving $30-32 million annually, resulting in around 200 job cuts. This latest round is expected to be similar in scale, with some positions possibly being relocated to lower-cost areas.
Following the announcement, Udemy’s stock price dropped by approximately 20%, contributing to a 46% decrease in 2024. In Q2 of 2024, the company reported a revenue of $194.4 million, lower than the previous quarter for the first time in its history. Declining consumer revenues, now nearing pre-pandemic levels, were the primary reason for this drop.
While Udemy has faced challenges in consumer revenue growth, Coursera has encountered difficulties in business revenue growth. The differing strategies of these platforms, focusing on content versus credentials, could explain this contrast.
Currently, Udemy’s market value stands at $1.11 billion.
