Paper layoffs: Entire Canadian tutor workforce cut amid struggles

What’s happening at Paper Education?

Prominent Montreal-based online tutoring company Paper Education has laid off its entire Canadian tutor workforce, impacting hundreds of employees. This move comes just weeks after the company reduced nearly half of its head office staff and replaced former CEO Philip Cutler with interim CEO Rich Yang. The layoffs are part of a broader strategy shift as the company grapples with decreased demand following the pandemic.

Official context and statements

In a message to employees, Yang explained that the company “never adjusted our tutor workforce” after the pandemic-induced surge in demand waned.

• He emphasized that Paper can no longer justify the number of tutors based on current market conditions.
• The Silicon Valley-based education technology executive, highlighted that the U.S. market, which constitutes the bulk of Paper’s business, will now be the primary focus as the company aims to stabilize its operations and improve its financial standing.

Paper’s recent challenges are a stark contrast to its rapid growth during the pandemic. The company became one of Canada’s fastest-growing startups, attracting significant investment, including a $380-million funding round in 2021 and 2022. However, as federal funding in the U.S. began to diminish, many school districts halted or declined to renew their contracts with Paper, leading to a sharp decline in demand for its services.

Industry reaction

The recent layoffs come amid broader concerns about the sustainability of the online tutoring market, especially as the urgency for remote education diminishes post-pandemic. Paper’s business model, which once thrived on providing 24/7, unlimited tutoring services, has faced scrutiny over its effectiveness in improving educational outcomes. Many U.S. school districts have expressed concerns about the low utilization of the service and its impact on the most vulnerable students.

Your rights

In Canada, non-unionized employees at Paper Education are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This applies to individuals working in any capacity — full-time, part-time, hourly, or potentially even independent contractors — in Ontario, Alberta, and British Columbia.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause, and can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Severance offers and deadlines

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements in a recession

Major layoffs continue

The job cuts come amid a flurry of layoffs in 2024.

Big names, including Wells Fargo, Intuit, UiPath, Dyson, Vancity, Stifel, SAP Canada, Netflix, AmDocs, EXL Service, Best Buy, Relic Entertainment, Ubisoft, Intel, Amazon, and Telus, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Shell to lay off 20% of deals division, part of restructuring
• Walmart Canada cuts jobs amid restructuring, shift to Spark: Reports
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.