Montréal-based EdTech startup Paper is navigating stormy waters, marked by its third significant round of layoffs within a year and a shakeup at the top.
As the company trims 45% of its workforce, it also ushers in a new era under interim CEO Rich Yang, a seasoned EdTech leader with a reputation for driving growth.
The layoffs, confirmed by a Paper spokesperson, slashed nearly half of the startup’s 180 head office employees in late July.
This wave of cuts follows the board’s decision to replace co-founder Phil Cutler with Yang, who now holds the dual role of interim CEO and executive chairman.
Yang’s track record includes steering Education.com to a successful acquisition by IXL Learning, making him a strategic fit for Paper as it recalibrates its course.
This latest transition hints at Paper’s efforts to reestablish itself as a leader in the competitive EdTech space.
An internal email noted the board’s confidence that Yang’s leadership would bring “fresh perspectives and renewed energy,” crucial as the company seeks to capitalize on new opportunities.
Founded in 2014 by Cutler and Roberto Cipriani, Paper was conceived as a platform to provide 24/7 tutoring and homework support for students across the socioeconomic spectrum.
The startup’s rise was fueled by the pandemic, which underscored the need for accessible educational tools.
Riding this wave, Paper secured a hefty CAD 343 million (USD 270 million) in Series D funding in 2022 and made strategic acquisitions in early 2023.
However, the rapid growth came with its own set of challenges.
Critics have pointed out that despite Paper’s promise of one-on-one tutoring, its tutors often juggle up to five students at a time.
The latest layoffs, following earlier cuts in August, September, and April of 2023, suggest that the startup is recalibrating its ambitions in a volatile market.
As Paper’s board continues its search for a permanent CEO, Yang’s interim leadership will likely shape the company’s trajectory in the months to come.
His experience and strategic acumen could very well be the catalyst Paper needs to navigate the choppy waters ahead, signaling a potential resurgence for the once-promising startup.
In the end, this story isn’t just about layoffs and leadership changes—it’s about the resilience of a company striving to stay afloat and the hope that new leadership will guide it back to calmer seas.
As the EdTech business landscape evolves, Paper’s next moves will be closely watched by industry insiders.
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