Byju's-owned Aakash Educational Services lays off 100 employees: Report

Troubled Byju's-owned offline coaching centre giant Aakash Educational Services Limited (AESL) has reportedly laid off around 100 employees in the last few months. 

According to Entrackr 's report, the company has fired employees, which also includes senior and middle-level executives. 

The report also said that several long-time employees were also impacted by this round of layoffs. 

Company shares response

In response to the layoffs, an AESL spokesperson explained that the company is undergoing a restructuring process as part of its Aakash 2.0 strategy.

The initiative aims to introduce new business models, create new roles, consolidate existing ones, and increase hiring in specific areas.

“As a high-performance organization, our performance reviews, talent development interventions, and consequence management follow a biannual cycle. We are introducing new business models as part of the Aakash 2.0 strategy, which includes creating new roles, consolidating existing ones, and aggressively hiring new talent," the company's spokesperson said.

Future hiring plans

Despite the layoffs, AESL plans to increase hiring by the end of the year. The company stressed that it expects to be a "net hirer" by then.

“Unlike other players in the category, we expect to be net hirers by the end of this year,” the spokesperson added.

However, the exact number of employees affected by the layoffs was not disclosed.

First major layoffs since acquisition

This is the first significant layoff at Aakash since it was acquired by Byju's in April 2021 for nearly $1 billion.

The acquisition, which is one of the largest in India’s edtech sector, was aimed at bolstering Byju's offline test preparation business.

In April 2023, Aakash appointed Deepak Mehrotra as its Managing Director and Chief Executive Officer. The company is projected to surpass Rs 2,300 crore in operating revenue for FY23, according to its valuation report.

The company has yet to file audited financial statements for both FY23 and FY24.