Edtech giant Byju's on the way to fire 1,000 employees: Report

Byju's, the Bengaluru-based edtech giant, which recently faced a massive valuation cut by its investor BlackRock, is reportedly leaving another 1,000 employees jobless, according to a Morning Context report.

This comes just a day after Byju's filed a complaint in the New York Supreme Court, contesting the acceleration of the $1.2 billion term loan it secured in November 2021. 

What makes this round of layoffs particularly noteworthy is the method of communication used. Byju's reportedly informed employees of their job loss over WhatsApp calls, eschewing traditional official emails. This unconventional approach aimed to prevent leaks and keep the news discreet. Unfortunately, some employees found out about their colleagues' dismissals through these calls, during which company executives, including the Vice President, team director, and HR personnel, were present.

Byju's ongoing efforts to streamline operations follow back to their announcement in October 2022, where they revealed plans to lay off 5% of their workforce, totaling around 2,500 individuals.

Since then affected employees have Gender equity focused investment firm AWE Funds raises $15Mbeen expressing dissatisfaction with the layoff process, stating that the reasons behind the terminations were unfounded and unrelated to individual performance or key responsibilities. 

“They were informed that since the team is not generating enough revenues, they will have to be let go, which is funny because generating revenue is not part of OKRs (objectives and key results) in the first place,” the laid-off employee said.

Byju's cited financial difficulties as the driving force behind the layoffs, explaining that reducing headcounts would help preserve cash for the future. This cost-cutting trend reflects the challenges faced by businesses in the digital K12 education market as they navigate a highly competitive landscape and strive for sustainable growth.

The affected employees now face an uncertain future, while Byju continues to adapt and evolve in response to the changing demands of the digital education sector. These layoffs serve as a reminder of the industry's volatility and the need for companies to constantly reassess their strategies in order to remain competitive.

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