Byjus Layoffs: Edtech company Byju’s, which is facing financial problems, was earlier paying salaries to its employees late. However, now it is being told that the company has shown the way out to about 500 employees by making just one phone call. According to media reports, this tough decision has been taken by the company to bring Byju’s back on track. However, it started 15-20 days ago. The latest round of job cuts will affect sales operations, teachers and some tuition centres. Byju may need to further harmonize things only in a very bad situation. There is information that some affected employees have been informed about layoffs over phone. But Byju has not given any official statement regarding the layoffs.
1500 more employees can be employed
Byju’s spokesperson said in an email response that we are in the final stages of the business restructuring exercise announced in October, 2023 to simplify the operating structure, reduce the cost base and better cash flow management. A spokesperson for Byju’s, which is embroiled in legal disputes with some investors, said it regretted the “unfortunate situation” the company has been forced into. Byju had earlier indicated that the business reforms exercise would affect around 4,500 people. Last year, around 2,500-3,000 people were laid off from their jobs in October and November. Despite around 3,000-3,500 people being affected by layoffs so far, there is still a possibility of 1,000-1,500 more people being laid off. Byju had recently informed about the delay in paying March salaries to its employees. The company is making efforts to pay salaries to its employees by April 8.
Also Read: How Gautam Adani gives time to his family, shared his own photo on social media and told the secret of relieving stress.
Why did the company fail?
Byju’s emerged rapidly as an education-technology platform. Through this, students were getting good online education at cheap rates. The company performed well during the Covid period. Also, the children were helped a lot. But due to many reasons the condition of the company deteriorated.
- Market Saturation and Competition: The ed-tech market in India became saturated, with many players competing for a share. Established competitors and emerging startups intensified competition, making it challenging for Byju’s to maintain its market dominance.
- Scaling and operational constraints: Rapid expansion created operational challenges, impacting the quality of customer service and content delivery. The inability to manage growth effectively led to customer retention problems.
- Over-reliance on fundraising: Byju’s relied heavily on continuous fundraising, which created immense pressure to meet realistic growth targets. Focusing on scaling without solid revenue streams created an unsustainable business model.
- Retrenchment decision and its impact: As Byju faced increasing challenges, the company took the difficult decision to implement retrenchments, affecting a significant portion of its workforce. This move not only highlighted the seriousness of the company’s struggles but also had an impact on employee morale and public perception. The layoff decision exposed Byju’s internal issues, raising questions about the company’s ability to weather the storm and its approach to talent management.
- Decline in revenues and investor confidence: Byju’s was initially hailed as a unicorn. But due to market saturation and increasing competition, its revenue growth began to stagnate. Failure to diversify revenue streams and excessive reliance on a few key products limited its potential for sustainable growth.