BYJU's will hand out pink slips to nearly 2,500 employees across departments to cut costs amid growing losses in the next six months, the company said in a statement today.
"To avoid redundancies and duplication of roles, and by leveraging technology better, around five percent of BYJU’S 50,000-strong workforce is expected to be rationalised across product, content, media, and technology teams in a phased manner," according to the statement.
The edtech major said its India K-10 acquisitions including Toppr, Meritnation, TutorVista, Scholar, and HashLearn, will be consolidated into a single business unit, whereas Aakash and Great Learning will continue to function as separate organisations.
“As a mature organisation that takes its responsibility towards investors and stakeholders seriously, we aim to ensure sustainable growth alongside strong revenue growth. These measures will help us achieve profitability in the defined time frame of March 2023” said Mrinal Mohit, CEO, BYJU’S India business.
“These measures will help us achieve profitability in the defined time frame of March 2023.”
BYJU's is valued at $22 billion, which makes it the most valued startup in the country.
BYJU’s has declared a revenue contraction of 14 percent to $327 million in FY21.
It happened due to a change in accounting practice as a result of which a significant part of the growth in its business was not captured in the revenue figure and was deferred to subsequent years, the company had said.
In the last six months, the company has had a difficult time as factors such as the year-long delay in filing of FY21 annual report, a large number of layoffs, and fundraising issues kept its stakeholders on the edge, Moneycontrol reported.
Earlier this year, the company had fired at least 600 people from group firms such as Toppr and WhiteHat Jr.
BYJU’s also said that it has plans to onboard about 10,000 more teachers in the next year, adding to its current strength of 20,000 teachers.
“At a group level, BYJU’S will continue to fuel its growth, the company is expanding its teams along with hiring senior leadership to further build operational strength,” the company said.
“Over the last three years, BYJU’S has acquired multiple companies whose integration with its core business is now complete,” it added.
The company will also make changes to its marketing budget for more efficient growth.
“There will also be retargeting of the marketing budget towards more efficient growth. Since significant brand awareness has been created in India over the past few years, there is a scope to optimise marketing budgets locally and prioritise spending to increase brand awareness in overseas markets,” the company said.
The edtech company is also planning to rejig its much-criticised sales model.
Now, multiple inside sales hubs will now be created across India from where BYJU’S sales associates will reach out to incoming leads through calls, email, and Zoom meetings.
According to the company, inside sales will lead to higher customer satisfaction and lower costs.
“These moves are expected to result in sizable savings with no impact on growth. None of these measures will have any impact on our revenue run rate”, said Mohit.