BYJU to lay off 3,500 employees hired during pandemic: Report

BYJU to lay off 3,500 employees 'overhired' during pandemic: Report

Layoffs in BYJU’s: With this, the total number of employees in BYJU’s will reduce to 31,000-33,000.

New Delhi:

Edtech major BYJU may lay off 3,500 employees during the current financial year as it looks to strengthen teams and increase regional focus, sources close to the development said.

According to one of the sources, BYJU’s had “hired more” people at the time of the Covid pandemic due to the sudden surge in online education, but now the demand has gone down, requiring the company to revamp the curriculum.

“There have been no layoffs yet. The company is in the process of restructuring and assessing demand across various units. About 1,000 people were already serving notice periods, and another 1,000 have not met their performance improvement parameters .The assessment is still going on. Around 3,000-3,500 people may be affected due to the entire process,” a source, who did not wish to be identified, told PTI.

Sources said this will be the last layoff on BYJU’s payroll and the entire process will be over by the end of October.

“The final phase of the restructuring is aimed at optimizing the business by bringing together multiple divisions and creating a clear accountability-driven structure. ₹3,000-3,500 is an estimate and not the company’s target,” the source said.

When contacted, BYJU’s spokesperson said: “We are in the final stages of a business restructuring exercise to simplify operational structures, reduce cost base and better cash flow management. BYJU’S new India CEO Arjun Mohan will be in the next few weeks. “We will complete this process in the U.S. and pursue a reformed and sustainable operation.” Sources said several business units were formed to meet the growth need during the pandemic and some product experiments were also conducted but they did not work well.

“There will now be simpler organization structure that will be divided between K12 education and other competitive exams. It will focus on consumer behavior services. There will be greater accountability of regional teams. There will be a bigger focus on hybrid models and tuition centers that need to be run ” In a decentralized manner with a regional focus,” the source said.

The layoff process is expected to impact 300-400 mid-level employees.

“Most of the business built during Covid was with a focus on new customers. BYJU’s is going through the same phase as other large technology companies, where there have been layoffs due to course correction and building sustainable business models. BYJU’s focus will increase existing On customers,” the source said.

With this, BYJU’s total headcount will fall in the range of 31,000-33,000 compared to the 50,000 workforce at the group level announced in October 2022.

Sources said most of the employees at third-party payrolls and subsidiaries like BYJU’s Future School, formerly WhiteJet Junior, were affected.

He said the total number of cuts also includes people leaving the organization voluntarily.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Leave a Comment

“The Untold Story: Yung Miami’s Response to Jimmy Butler’s Advances During an NBA Playoff Game” “Unveiling the Secrets: 15 Astonishing Facts About the PGA Championship”