Edtech major BYJU’S may lay off up to 3,500 employees during the current fiscal as it looks to consolidate teams and enhance regional focus, sources privy to the development said.
According to one of the sources, BYJU’S had “over hired” people at the time of Covid pandemic due to sudden jump in online education, but the demand has now receded, for which the company needs to do the course correction.
“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 the whole exercise,” a source, who did not wish to be identified, told PTI.
The sources said this will be the last lay off at BYJU’S payroll and the entire exercise will be over by October end.
“The final phase of restructuring intends to optimise 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 said.
When contacted, BYJU’S spokesperson said: “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.”
