BYJU’S, the global Edtech leader, has announced that by March 2023, it’s going to lay off a whopping 2500 employees from different departments. The job-cut expedition will be spread across the media, technology, content, and product teams.
The laying-off process will roll out over the span of six months, divided into numerous phases. BYJU’s decision-makers arrived at this conclusion after it suffered a major loss. Upon inspection, data revealed there are two major factors behind such loss: employee expenses and higher promotion.
Further, it will consolidate acquired businesses like TutorVisa, Scholar, Toppr, HashLearn, and Meritnation into one unit. However, Aakash and Grear Learning will continue functioning as individual businesses.
Reportedly, the renowned online learning platform suffered a whopping 45.64 billion rupees loss in 2021. Compared to the statistics of FY20, the loss that occurred was 20 times higher. On the other hand, revenue from operations dropped from INR 2,511 cr in 2020 to INR 2,428 cr in 2021, i.e., 3.3 percent.
BYJU stated major losses resulted from the newly acquired WhiteHatJr in 2020. The reason was clearly high cash burn.
Mrinal Mohit, the CEO of BYJU’s India, said the organization takes their investor very seriously. BYJU’s is aware of its responsibility towards its stakeholders and investors. By cutting jobs, the organization aims to prevent role duplication and attain profitability by the financial year 2023.
Will it push job scarcity?
That being said, BYJU has also revealed that it will hire around 10,000 teachers simultaneously. The organization will expand its faculty, which stands at 20,000 presently. It will continue to expand its team to accelerate its growth. Additionally, it’s planning to hire senior leaders to establish a strong operation team.
Given the current faculty recruitment drive that the organization is going to conduct, it doesn’t seem like job scarcity will be a matter of concern.