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Home / Business

Education Perfect staff who were told jobs were safe now face redundancy

By Riley Kennedy
Otago Daily Times·
5 Jul, 2021 10:36 PM4 mins to read

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Education Perfect's head office in Vogel St, Dunedin. Photo / Gregor Richardson

Education Perfect's head office in Vogel St, Dunedin. Photo / Gregor Richardson

Staff at a Dunedin tech company went from being told it was business as usual following a buyout worth hundreds of millions, to facing redundancy a day later.

A staff member at Education Perfect told the Otago Daily Times they felt betrayed after members of the about 40-strong team faced losing their jobs.

They said staff learnt of the proposal to make a quarter of the team redundant a day after chief executive Alex Burke reiterated comments made in public that it was business as usual after global investment firm Kohlberg Kravis Roberts (KKR) announced it was taking a majority stake.

Alex Burke CEO of Education Perfect. Photo / Peter McIntosh
Alex Burke CEO of Education Perfect. Photo / Peter McIntosh

Education Perfect provides education tools to pupils all over the world and is now used by 85 per cent of all New Zealand secondary schools, its largest market now being in Australia.

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The deal valued the company at $455 million.

About 150 of the company's 200 staff work from its Dunedin office.

Staff who work outside the content team were not included in the restructuring.

The staff member in the content team, whom the ODT has agreed not to name, said under the proposal all members of the team would have to reapply for their jobs.

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Lesson content would be outsourced on a gig economy basis from across the globe, rather than being created in-house.

The staff who remained would be restructured into proof-reading roles.

When the KKR deal was announced, Burke said that "nothing will change".

"It will still be a Dunedin and Otago home. We see that Kiwi heritage as really important to us.

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"I will be staying in with my leadership team, so it will be business as usual," he said last month.

The staff member said Burke briefed staff on Thursday, when he reiterated that message.

However, the day after, several meetings were held by Burke and head of operations Emma McAllister with members of the content team to brief them on the redundancy proposal.

The staff members affected have until Friday this week to respond to the proposal. An announcement is due on Wednesday next week.

The staff member described it as "a kick in the guts for the team".

"After seeing Alex's comment about nothing will change, it feels like he flat out lied to us.

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"It is a massive blow to people's careers. It makes me feel hurt, I feel livid. The whole thing just makes us feel undervalued and not wanted," they said.

The staff member said the issue had worried the whole team over the weekend.

Despite what had happened, they described Education Perfect as a "fun" place to work.

They did not believe they could get another job like it in Dunedin.

"It is Dunedin, it's small, Dunedin is my home, I have a house ... I can't just move anywhere and what I have done is so niche for so long that my chances of getting another job are pretty slim.

"Now, the thing is, we are all going to be possibly looking for the same jobs," they said.

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A spokeswoman for Education Perfect did not answer specific questions about the restructuring but said it had carried out restructuring in the past as the company evolved and grew.

Building a high-growth company meant adopting structures, engaging talent and placing the right people in the right roles, which was a critical component to securing a strong foundation that allowed for growth.

The spokeswoman also pointed out they had employed 100 new staff in the past year.

"The firm will continue to create a significant number of new jobs and opportunities in New Zealand and Australia as it continues to grow."

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