Byju’s is said to fire hundreds of more employees at the company. A new report claims that the Edtech startup is planning to layoff 1,000 more employees, as part of its cost-cutting measures and to streamline operations. The latest round of layoffs will be impacting a few departments and some third-party staffers. Here is everything we know so far.
Byju’s first announced the layoff of 2,500 employees back in October 2022 and now, the company is ready to let go of more workers, as per an ET report. The employees who were working on a contractual basis in the on-ground sales teams will be affected the most.
Apart from these, the marketing executives that were on the third-party payrolls of companies like Channelplay and Randstad have also been impacted by the layoff. Byju’s hires and removes people that it onboard on a contractual basis depending on the demand for its business. Though, it is being said that the company is now witnessing low growth and experiencing financial issues due to which it is eliminating employees.
“It is no surprise that Byju’s is looking to cut costs now, especially when growth has completely stalled, and the focus for them is on building a hybrid play with (test-prep subsidiary) Aakash. It seems like a hybrid strategy is one of the last straws left for online edtech as it gets harder to sell online courses,” a person who is familiar with the matter told ET.
So far, there is no official India Today Tech has reached out to Byju’s for confirmation on the latest development and we will update the copy once we receive it.
In October last year, the company announced that it would fire at least 2,500 employees and the layoff process will continue until March 2023. It was reported earlier this year that the company’s layoff impacted people in senior strategy, technology and product roles.
All this is not surprising because many tech companies have been firing thousands of employees across the globe. Meta, which is one of the biggest tech companies in the world, conducted 3 rounds of layoffs in the past 6 months. It has so far fired 21,000 employees. Amazon is yet another major tech company that laid off a total of 27,000 workers.
Microsoft is still eliminating people as many laid-off employees are still reporting on LinkedIn about the loss of jobs. The tech giant has sacked as many as 10,000 employees, whereas companies like Google fired 12,000 employees.