Softbank-backed tutor-by-text service Paper cuts 45% of head office jobs, replaces founder

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Softbank-backed tutor-by-text service Paper cuts 45% of head office jobs, replaces founder
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Once one of Canada’s hottest startups, the Montreal-based company has struggled since pandemic to retain and grow school district customers

Paper's former CEO and co-founder Philip Cutler, pictured in 2021, has been replaced on an interim basis by veteran Silicon Valley-based education technology executive Rich Yang.Online tutoring company Paper Education Company Inc. has cut nearly half its head office staff and replaced CEO and co-founder Philip Cutler as it contends with multiple business challenges after experiencing explosive growth during the pandemic.

An internal e-mail from Paper’s board to employees in July leaked on Reddit stated the leadership change was “part of our ongoing efforts to re-establish Paper’s position as a market leader” and “bring fresh perspectives and renewed energy to our team.” Despite his comfortable circumstances, Mr. Cutler was struck by inequities in the classroom as he began teaching at two schools in Westmount. He observed that wealthier students had better access to tutoring than those who needed it most. He felt he could use technology to level the playing field, offering a cost-effective learning-improvement tool to school districts to bring tutoring to the masses, and set out with Mr. Cipriani to build a tutoring-by-text service.

Perceived value-for-money was an issue. While many school officials praised Paper for providing students with greater access to tutoring, low utilization and awareness were chronic challenges. Meanwhile, those who used it most were often “the most engaged students, not the lowest performers” who needed the help the most, Mr. Cutler told the Globe in late June. He did not respond to messages this week.

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