Byju's, the world's most valued edtech company, has laid off another 1,000-1,200 employees as it seeks to cut costs amid slower revenue growth and a worsening funding winter. The employees were informed about the layoffs through Google Meet calls, instead of emails, as the latter has a tendency to get leaked, according to sources. The layoffs have affected employees from the engineering, sales, logistics, marketing, and communications teams.
The engineering team has reportedly faced the most significant cuts with around 300 employees being laid off. The logistics team has also seen a decline in workforce as it has been reduced by 50% since October. The company has been outsourcing logistics, hence the reduction in the in-house logistics team size.
The latest round of layoffs comes at a time when Byju's has been looking to cut costs aggressively, following a net loss of Rs 4,589 crore in FY21 (2020-21). The company's CEO, Byju Raveendran, had reassured employees in multiple internal emails that there wouldn't be any layoffs since the company had already cut 5% of its staff, around 2,500 employees, in October.
In an internal email to employees in October, Raveendran had stated that Byju's would prioritize rehiring the laid-off employees as it restructures and hires again for ‘newly created relevant roles.’ The recent layoffs, however, come as a disappointment to the employees who had been reassured of job security.
In the competitive and rapidly evolving edtech industry, companies like Byju's have been facing numerous challenges, including declining revenue growth, increased competition, and a funding winter. The ongoing COVID-19 pandemic has only added to the challenges, with schools and educational institutions being closed and students relying on online learning.
In such circumstances, companies like Byju's have been forced to re-evaluate their business models, cut costs, and streamline operations. While layoffs are never easy, they may be necessary to ensure the long-term success and sustainability of the company. However, it remains to be seen how the recent layoffs will impact Byju's employees and the company's overall performance in the future.
