In a significant development, Byju’s, the leading edtech company in the country, has implemented a substantial downsizing strategy. Approximately 1,000 employees have been let go as part of the company’s restructuring efforts.
Sources familiar with the matter reveal that the layoffs have affected various departments within Byju’s.
Earlier discussions hinted at the possibility of significant employee reductions, and now this news has become a reality.
This downsizing trend is not unique to Byju’s, as companies worldwide are grappling with the looming economic downturn.
Second Wave of Layoffs in 2023
Earlier this year, Byju’s had already let go of around 1,000 employees, and now they have resorted to a second round of layoffs.
According to information quoted by PTI, Byju’s has terminated the employment of another 1,000 individuals.
However, despite these workforce reductions, the overall headcount of the company still stands at approximately 50,000, thanks to new hires being onboarded.
Cost Cutting Measures in Action
Against the backdrop of an ongoing legal dispute in a US court regarding a billion-dollar debt repayment, Byju’s has initiated another wave of workforce reductions.
Sources indicate that these recent layoffs are part of the company’s broader cost-cutting strategy.
Byju’s founder and CEO, Byju Raveendran, had previously assured employees in October that there would be no further layoffs after reaching a workforce size of 2,500.
The latest round of layoffs began on June 16, with affected employees receiving notification of their termination through face-to-face meetings and phone calls.
The cuts have impacted teams across various areas, including Platform, Brand, Marketing, Business, Product, and Tech.
India’s Leading Edtech Giant
Byju’s, one of India’s most prominent startups, boasts an extensive workforce of around 50,000 employees.
Once valued at $22 billion, the company was established in 2011 and has successfully attracted investments from global players like General Atlantic, BlackRock, and Sequoia Capital over the past decade.
Reportedly, Byju’s is reducing its workforce as part of cost-cutting measures.
The majority of employees affected by the layoffs were associated with on-ground sales teams and were employed on a contractual basis.
These individuals were recruited through third-party agencies authorized by Byju’s.
Challenges Faced by Edtech Companies
Why are edtech companies worldwide experiencing layoffs? Experts offer insights into this phenomenon, explaining that during the COVID-19 lockdown, tech companies witnessed a surge in hiring due to favorable circumstances.
With people working remotely, there was an increased demand for technology and educational materials.
However, as schools and colleges reopened and students returned to physical classrooms, the demand for edtech solutions declined, leading to the current challenges faced by the industry.
