Amazon To Shut Online Learning Academy in India

Amazon.com Inc (AMZN.O) said on Thursday that its online learning platform for high-school students in India would be shut down, though no reason was given.

The Amazon Academy platform, which coaches students for exams like JEE (Joint Entrance Examination) to get into top engineering colleges in India, launched early last year during the COVID-19 pandemic when virtual learning became popular.

In a statement, the e-commerce giant announced that it would be discontinuing Amazon Academy “in a phased manner” based on an assessment.

As multiple edtech firms are struggling to stay afloat due to schools and coaching centers reopening across India, Byju’s has announced that it will lay off 2,500 employees.

Last month, Byju’s stated that it would lay off 2,500 employees in order to become profitable.

According to local media reports, other companies such as Unacademy, Toppr, WhiteHat Jr, and Vedantu announced layoffs earlier this year.

The online learning sector in India has seen a boom due to the pandemic, as parents opt for virtual classes instead of sending their children to physical schools.

However, with the gradual reopening of schools and colleges across India, students are now returning to physical classrooms and thus opting out of online learning platforms. This has resulted in companies in the sector struggling to remain profitable.

Amazon’s decision to shut down its online learning platform is yet another sign of the difficulties faced by edtech firms in India, which are now forced to reconsider their business strategies and cut costs in a bid to become sustainable.

It remains unclear how this will affect Amazon’s other educational initiatives or whether it plans to launch new services in this area.

For now, Amazon has stated that its other education initiatives such as Kindle in the Classroom and Alexa School & Home Skills will continue to operate. It also said that it will still offer opportunities for students to learn via its online store.

It remains to be seen how this development will affect the online learning sector in India, and whether firms will be able to adjust their strategies for a post-pandemic world.

It also remains to be seen if Amazon will reintroduce any services in this area or whether it plans to launch new initiatives.

There was no comment from Amazon on the matter. Only time will tell how this decision will affect the sector as a whole and what new strategies firms will adopt in response.

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