Indian edtech company Byju’s fired 2500 employees as the company is in the loss.
The $22 million start-up said in a statement on Wednesday that the layoffs are a step toward cost-cutting and achieving overall profitability.
Due to rising staff and promotion costs, the online learning platform recorded a loss of 45.64 billion rupees ($554.77 million) for the fiscal year 2021 in May.
According to Moneycontrol.com, Byju’s statement said that “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 rationalized across product, content, media, and technology teams in a phased manner,”
The company sacked employees from the Toppr and WhiteHat Jr. team. They have not included sales & marketing, operations, content and design teams in this list. In addition to it, 600 contractual employees are asked to leave the company.
Further, They have merged Meritnation, Tutorvista, Hashlearn, Toppr & Scholar into a single business unit. And kept Aakash and Greatlearning as a separate organisations.
Employees are asked to put resignation papers and then their salaries of 1 -1.5 months will be released from the financial department.
Earlier this year, the company had lay off at least 600 people from group firms such as Toppr and WhiteHat Jr. T. And current lay off are on top of this.
Conclusion on Byju’s fired 2500.
This company had good growth during the Covid period. And They acquired many small to big organizations who are involved in the EdTech side. They have taken investment from most big investor. And spent huge amount on each and every aspect of business. Like IPL sponsorship, Shahrukh khan as brand ambassador, and so on . But, As the situation resumes back to normal after Covid, the sales and revenue are not to the level as they expected. As a result of this, They are suffering with huge loss. Hence, they are cutting down the cost and looking to grow the company along increase in profitability.