The most valuable edtech firm in the world, BYJU’s, announced in a statement that it will be cutting costs by terminating around 2,500 employees across departments.
The statement reads: “Around 5% of BYJU’S 50,000-strong workforce is projected to be rationalised across product, content, media, and technology teams in a stepwise way to reduce redundancies and duplication of tasks, and by better leveraging technology.”
“As an established company that takes its obligation to stakeholders and investors seriously, we work to achieve sustainable growth in addition to rapid revenue growth. These steps will enable us to turn a profit by March 2023, as stated, according to Mrinal Mohit, CEO of BYJU’S India.
2,500 full-time and contract workers from Toppr, WhiteHat Jr, and its core team in the sales and marketing, operations, content, and design departments were laid off, according to a Moneycontrol report from June.
The company has had a difficult last six months as a result of factors such the year-long delay in completing the FY21 annual report, several layoffs, and problems with fundraising alarmed its stakeholders.
2,500 full-time and contract workers from Toppr, WhiteHat Jr, and its core team in the sales and marketing, operations, content, and design departments were laid off, according to a Moneycontrol report from June.
The company has had a difficult last six months as a result of factors such the year-long delay in completing the FY21 annual report, several layoffs, and problems with fundraising alarmed its stakeholders.
This cannot be any more difficult. The creator of the $23 billion corporation with the same name, Byju Raveendran, previously told Moneycontrol that if this doesn’t break us, nothing else will. He claimed that due to concerns over the operations of India’s most valued startup, he has had restless nights.
According to the FY21 figures, the company’s sales decreased by 3% annually to Rs 2,428 crore on a consolidated basis, from Rs 2,511 crore the year before. In comparison to the adjusted loss of Rs 231.69 crore in FY20, BYJU’s recorded a loss of Rs 4,589 crore in FY21 (2019-20).
The corporation stated in a statement on Wednesday that the layoffs are a move toward cost-cutting and overall profitability. However, BYJU’s also asserted that it intended to increase its present staff of 20,000 teachers by roughly 10,000 over the course of the following year.
“BYJU’S will continue to drive its expansion at the group level; the company is growing its teams and hiring senior leadership to further strengthen operational strength,”
“BYJU’S has purchased a number of companies over the past three years, and their integration with its main business is now complete,” it added.
Additionally, the business will adjust its marketing budget to promote growth that is more effective. As a result of the recent large growth in brand awareness in India, BYJU’s believes that there is room to prioritise spending to raise brand awareness in international markets while still maximising local marketing expenses.
The education technology company also intends to modify its harshly criticised sales methodology. The creation of numerous inside sales hubs around India will now allow BYJU’S sales representatives to contact inbound leads via phone calls, emails, and Zoom meetings. The corporation claims that inside sales would increase client happiness while reducing expenses.