Edtech unicorn Byju’s on Wednesday said it will lay off 2,500 employees accounting for 5% of its workforce over the next six months, as it aims to become profitable by March 2023.
The job cuts are planned across product, content, media and technology teams in a phased manner to avoid duplication, the company said. The cost cuts will help achieve better unit economics and prepare the ground for its initial public offering (IPO), it said.
Byju’s said it has completed the integration of the companies it acquired over the past three years, including Toppr, Meritnation, TutorVista, Scholar and HashLearn, into its core K-10 business. Aakash and Great Learning will continue to function as separate organizations.
“As a mature organization that takes its responsibility towards investors and stakeholders seriously, we aim to ensure sustainable growth alongside strong revenue growth. These measures will help us achieve profitability in the defined time frame of March 2023,” said Mrinal Mohit, chief executive of Byju’s India business.
Byju’s also said it will reduce the number of on-ground sales staff, a decision which comes after allegations of aggressive marketing practices and misselling. It is expected to move a lot of selling over online channels, in order to be able to control the quality of its sales and services.
Byju’s also said it will continue to hire across levels and will end this fiscal as a net hirer. The company plans to hire a total of 10,000 more teachers in the coming year, adding to its current strength of 20,000 teachers.
The Tiger Global-backed company also said that it is expanding its teams, along with hiring senior leadership to further build operational strength.
“There will also be retargeting of the marketing budget towards more efficient growth. Since significant brand awareness has been created in India over the past few years, there is a scope to optimize marketing budgets locally and prioritize spending to increase brand awareness in overseas markets,” the company said.
Byju’s is also reinventing its sales model to focus more on inside sales, and using video calling platforms which the company believes will enhance customer experience and reduce operational costs.
Multiple inside sales hubs will now be created across India from where Byju’s sales associates will reach out to incoming leads through calls, email and Zoom meetings. Inside sales will lead to higher customer satisfaction and lower costs, the company said.
Byju’s posted a loss of ₹4,588 crore in FY21, up from ₹231.69 crore in FY20.
The announcement came after a delay of 18 months. Its total expenses were ₹7,027.47 crore in FY21, against ₹2,873.34 crore in FY20.