BYJU’s : In a strategic move to consolidate teams and refocus on regional markets, the prominent Edtech major BYJU’s is contemplating a significant workforce reduction, potentially impacting up to 3,500 employees during the current fiscal year. Sources with inside knowledge of the matter revealed that this restructuring effort is a course correction aimed at aligning the company with the evolving demands of the online education landscape.
The upheaval traces back to the early days of the COVID-19 pandemic when BYJU’s, like many other online education platforms, experienced a surge in demand as students turned to remote learning. In response to this unprecedented growth, the company rapidly expanded its workforce, inadvertently leading to an “over-hiring” situation. However, as the pandemic subsided, the demand for online education normalized, necessitating a strategic pivot.
BYJU’s Layoffs Continues
A reliable source explained, “There has been no retrenchment as of now. The company is in the process of restructuring and assessing demand across various units. Around 1,000 people were already serving notice periods, and another 1,000 have not completed their performance improvement parameters. Assessment is still underway. About 3,000-3,500 may be impacted due to the whole exercise.”
It’s worth noting that this impending layoff is anticipated to be the final one for BYJU’s, with the entire restructuring process expected to conclude by the end of October.
“The final phase of restructuring intends to optimize the business by bringing together multiple divisions and creating a clear accountability-driven structure. The 3,000-3,500 is an estimate and not the target of the company,” the source emphasized.
When reached for comment, a spokesperson for BYJU’s stated, “We are in the final stages of a business restructuring exercise to simplify operating structures, reduce the cost base, and better cash flow management. BYJU’S new India CEO Arjun Mohan will be completing this process in the next few weeks and will steer a revamped and sustainable operation ahead.”
The restructuring will involve streamlining the organization into two primary divisions: K12 education and competitive examinations, with a heightened focus on consumer behavior services. Regional teams will assume greater accountability, and there will be a concerted emphasis on hybrid models and decentralized management of tuition centers, all with a strong regional focus.
This layoff initiative is projected to impact primarily mid-level employees, estimated to be between 300-400 individuals.
“Most of the business built up during Covid was with a focus on new customers. BYJU’s is going through the same phase as other major technology companies, where layoffs have occurred to course-correct and establish sustainable business models. BYJU’s will enhance its focus on existing customers,” the source elaborated.
As a result of these changes, BYJU’s total workforce is expected to decrease significantly, from its peak of 50,000 employees at the group level in October 2022 to a range of 31,000-33,000 employees.
Insiders have revealed that the impact of the layoffs will extend to employees under third-party payroll and across subsidiaries, including BYJU’s Future School, formerly known as Whitejat Jr. The reduction in the workforce also encompasses individuals who have opted to leave the organization voluntarily.
Also Read : Bank of Baroda : Divesting Entire Stake in New Zealand Business