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Hi readers,
After my investigative story broke on LingoAce’s expansion troubles, which led to hundreds of staff being laid off in the past year, a source told me that our representation of events wasn’t nearly as harrowing as what they felt had been put through.
It’s a tough balancing act to reconcile varying viewpoints, especially when sources’ versions of events deviate from a company’s official account.
Personal recounts can be subjective and often emotionally charged, especially when an action cuts deep, and understandably so (not to say they are to be discredited). Meanwhile, leaders always have a reason to justify whatever actions they take.
After supporting LingoAce’s aggressive expansion into new markets and products in the past three years, successive rounds of layoffs, reassurances of job security that held no weight, and minimal outplacement support provided by the firm have left a bitter taste in the mouth of many former staffers.
LingoAce CEO Hugh Yao, addressing these claims in an interview with us, has justified the cuts as a necessary step amid a reorganization of the business in line with financial sustainability. The firm continues to hire in China and Malaysia as it bets on growth in the US and Europe with new subjects like English, math, and music.
Still, with leading edtech firms like Byju’s coming under pressure amid rising dissatisfaction over the quality of classes, allegations of a toxic workplace culture and mis-selling practices, and concerns over its accounts – all while funding challenges loom in the current economic climate – it seems that troubles in the edtech sector are far from over.
— Melissa Goh, journalist at Tech in Asia
Top stories this week
Image credit: Timmy Loen
1️. ‘Entire teams gone overnight’: LingoAce laid off hundreds amid expansion hurdles
The pandemic years saw unabated spending as the Singapore-headquartered edtech firm pursued growth. Now, it’s grappling with the consequences.
2. SG firm uses AI helps FMCG clients create new products
SaaS platform Ai Palette now has two generative AI products to help clients in the F&B and personal care space speed up their product development.
3. ‘A fighting chance’: Why Mirxes chose Hong Kong over Singapore for its IPO
CEO Zhou Lihan says Hong Kong offered a better valuation and a more savvy investor pool for the Singapore-based cancer diagnostics firm.
4. Sea Group’s financial health in 8 charts
Here are 8 charts that offer a snapshot of how Sea Group, the company behind Garena and Shopee, is faring.
Indonesian Mukbang with Michael Lints
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