Edtech unicorn Byju’s to lay off 2,500 employees; 5% of its workforce

Byju’s also said it will reduce the number of on-ground sales staff, a decision which comes after allegations of aggressive marketing practices and misselling. It is expected to move a lot of selling over online channels to be able to control the quality of its sales and services.

Edtech unicorn Byju’s on Wednesday said it will lay off 2,500 employees accounting for 5% of its workforce, over the next six months, as it aims to become profitable by March 2023.

The job cuts are planned across product, content, media, and technology teams in a phased manner to avoid duplication, the company said. The cost cuts will help achieve better unit economics and prepare the ground for its initial public offering (IPO), it said.

Byju’s said it had completed the integration of the companies it acquired over the past three years, including Toppr, Meritnation, TutorVista, Scholar, and HashLearn, into its core K-10 business. Aakash and Great Learning will continue to function as separate organizations.

Byju’s also said it will reduce the number of on-ground sales staff, a decision which comes after allegations of aggressive marketing practices and misselling. It is expected to move a lot of selling over online channels to be able to control the quality of its sales and services.

Byju’s also said it will continue to hire across levels and end this fiscal year as a net hirer. The firm plans to hire 10,000 more teachers in the coming year, adding to its current strength of 20,000 teachers. The Tiger Global-backed company also said that it is expanding its teams and hiring senior leadership to build operational strength.

Byju’s is also reinventing its sales model to focus more on inside sales and using video calling platforms which the company believes will enhance customer experience and reduce operational costs. Multiple inside sales hubs will now be created across India from where Byju’s sales associates will reach out to incoming leads through calls, emails and Zoom meetings. Inside sales will lead to higher customer satisfaction and lower costs, the company said.

Byju’s posted a loss of ₹4,588 crore in FY21, up from ₹231.69 crore in FY20. The announcement came after a delay of 18 months. Its total expenses were ₹7,027.47 crore in FY21, against ₹2,873.34 crore in FY20.