Multiverse cut dozens of jobs as losses widened

2026-01-06 · Source: Sifted · Field: Business & Management — Entrepreneurship & Start-ups, Corporate Strategy & Leadership, Human Resources & Workforce Development · Depth: Fundamental Awareness, quick

Summary

London-based edtech startup Multiverse, founded in 2016 by CEO Euan Blair, cut dozens of jobs in the year ending March 2025, making 55 redundancy payments. This occurred as the company's pre-tax losses widened to £63.3m, an increase of £2.6m from the previous period, despite revenues climbing over a third to nearly £80m. Multiverse stated that it is employing fewer people but rewarding them more, attributing accelerating revenue growth to this strategy and increased productivity from AI investments, with revenue per employee up 37%. The company is also trending towards profitability, with EBITDA improving from -£61.3m to -£59.7m. These cutbacks follow an earlier pivot from placing school leavers into apprenticeships to upskilling mid-career employees for corporate clients, which led to previous layoffs and a retreat from the US market.

Key takeaway

For executives overseeing growth-stage companies facing widening losses, Multiverse's experience highlights the importance of strategic pivots and operational restructuring. You should consider how targeted workforce adjustments, coupled with investments in productivity-enhancing technologies like AI, can drive revenue per employee and improve key earnings metrics like EBITDA, even amidst initial financial setbacks. Proactive organizational structuring can mitigate self-inflicted wounds.

Key insights

Multiverse cut jobs and shifted strategy to improve productivity and accelerate revenue growth despite widening losses.

Principles

• Strategic pivots can necessitate workforce adjustments.
• Productivity gains can offset headcount reductions.

In practice

• Implement AI to boost revenue per employee.
• Restructure teams to align with new market focus.

Topics

• Edtech Industry
• Startup Layoffs
• Financial Performance
• Business Strategy
• Corporate Upskilling

Best for: Executive, Entrepreneur, Investor

Related on AIssential

• Euan Blair’s Multiverse raises $70M at $2.1BN valuation — Multiverse secured £70M to expand AI training in Europe, aiming to bridge the gap between AI and workforce skills.
• Meta: How a Tech Giant was Transformed by Dramatic AI Pivot — Meta's aggressive AI pivot, despite financial gains, severely impacted employee morale and operational stability, highlighting the cost of rapid, poorly communicated change.
• LinkedIn cuts 5% of workforce in global reorganization — Strategic reorganization and investment shifts are driving LinkedIn's workforce reduction, not AI.
• Is Generative AI creating more Jobs? — Generative AI's impact on job markets presents a paradox of efficiency-driven layoffs versus potential long-term job creation.
• how to survive the AI Fuckening — Mass AI-justified layoffs are a poor strategic choice for long-term profitability and shareholder value.
• Meta is Cutting 8,000 Jobs Due to AI Investment — Meta's substantial layoffs reflect a strategic shift towards AI-driven efficiency, impacting workforce size and composition.

Open in AIssential →

Editorial summary, takeaway, and curation by AIssential. Original article published by Sifted.