28 September 2023: According to people familiar with the situation, edtech giant Byju’s may let go of up to 3,500 workers during the current fiscal year as it strives to streamline teams and sharpen its regional emphasis.
One of the sources claims that Byju’s “overhired” workers during the COVID epidemic because of the unexpected increase in online schooling, but that demand has since subsided and the business now has to make a course correction.
As of right now, there hasn’t been a retrenchment.
“About 1,000 individuals were already on leave, and another 1,000 still haven’t finished their performance improvement requirements. The assessment is still in progress. A source who did not want to be named told PTI that the whole process may have an effect on between 3,000 and 3,500 people.
According to the sources, this will be the last layoff at Byju’s payroll, and the whole process will be finished by the end of October.
“By combining several divisions and establishing a crystal-clear accountability-driven structure, the last phase of restructuring aims to optimise operations. The 3,000–3,500 range is an estimate, not the company’s ambition, the insider said.
Byju’s representative responded to inquiries by saying, “We are nearing the conclusion of a business restructuring exercise to streamline operating structures, lower the cost base, and improve cash flow management.”
In the next few weeks, this process will be finished, and Arjun Mohan, the new CEO of Byju India, will lead a redesigned and sustainable organisation.
According to the sources, a number of business units were established to address the need for expansion during the pandemic, and a small number of product tests were conducted, but they did not go well.
“K12 schooling and other competitive tests will now be organised into a straightforward organisational framework.
It will emphasise services related to customer behaviour. Regional teams will be held more responsible.
According to the source, “hybrid models and tuition centres that need to be run in a decentralised manner with regional focus” would get a lot of attention.
300–400 mid-level workers are anticipated to be affected by the layoff exercise.
“During COVID, new clients were the main focus of the majority of the company’s growth.
“Byju’s is going through the same period as other significant technological firms, where layoffs have occurred as a result of course correction and the development of long-term business strategies.
According to the source, “Byju’s will increase focus on existing customers.”
As a result, Byju’s will have between 31,000 and 33,000 overall workers, down from the 50,000 workforce at the group level that it had previously announced in October 2022.
The majority of workers on third-party payroll and across subsidiaries, including Byju’s Future School, previously Whitehat Jr., were reportedly affected, according to the sources.
According to them, people departing the company willingly were included in the overall number of reductions.
