According to those familiar with the situation, edtech unicorn BYJU’s has gone through another round of layoffs, laying off around 1,000 staff. “Today morning, workers were laid off in every tech team,” stated an employee on the company’s engineering team. Deep cuts occurred in my team as well. Over 1,000 individuals have been sacked, representing 15% of all engineering teams.”
Details about BYJU dismisses 15% of its engineering workforce, 1,000 jobs are lost in total
A newly laid-off employee reports that the corporation has laid off all new employees. “All freshers have been sacked by BYJU in this layoff,” the fresher stated.
A current employee of the company also stated that in October of last year, 30% of the tech and engineering staff was laid off. “In the previous round of layoffs, 30% of the engineering team was sacked,” he claimed. This time, an additional 15% has been terminated.”
On Wednesday, Business Today contacted BYJU’s for comment on the aforementioned claims. Their reaction will be incorporated into the copy.
In October, the corporation said that it had laid off 5% of its whole personnel, or 2,500 employees out of a 50,000-person workforce. Byju Raveendran, the company’s founder, justified the layoffs by saying it was a necessary step for the company to become profitable.
According to FY21 financial documents, the edtech behemoth incurred a loss of Rs 4,589 crore, the highest ever declared by an Indian firm. The company’s revenue had dropped by 3.3%. Interestingly, the company’s FY21 financials were delayed by nearly 18 months, much to the chagrin of the Corporate Affairs Ministry.
In FY21, BYJU spent more than Rs 2,500 crore on advertising and marketing. The corporation invested $40 million (Rs 330 crore) to become the FIFA World Cup’s official sponsor.
After taking over the sponsorship from Oppo in 2019, the firm became the major sponsor of the Indian cricket team. They paid Rs 4.61 crore for each bilateral match and Rs 1.51 crore for each individual match. They also reportedly renewed their contract with the Board of Control for Cricket in India (BCCI) for $55 million (Rs 454 crores).
BYJU’s, on the other hand, indicated that it would not renew its affiliations with the BCCI (Board of Control for Cricket in India), the ICC (International Cricket Council), and FIFA (Federation Internationale de Football Association).