In order to achieve overall profitability, edtech major BYJU'S on Wednesday, October 12, said the company has laid off 2,500 employees or around 5 percent of the 50,000-strong workforce across product, content, media, and technology teams in a phased manner.

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The company said the retrenchment has been done to avoid redundancies and duplication of roles.

At a group level, BYJU'S top priority is to achieve overall profitability by March 2023. These steps are also meant to prepare the path toward a stellar listing eventually, as the world’s largest edtech company tries to turn profitable.

At a group level, BYJU'S will continue to hire across all tiers and will end this financial year as a net hirer. BYJU'S plans to hire a total of 10,000 more teachers in the coming year, adding to its current strength of 20,000 teachers.

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To fuel its growth, the company is expanding its teams along with hiring senior leadership to further build operational strength, the company said.

"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 optimise marketing budgets locally and prioritise spending to increase brand awareness in overseas markets," it said.

The company said it's reinventing its sales model to focus more on inside sales, using video calling platforms, which in turn will enhance customer experience and reduce operational costs.

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"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 added.

Mrinal Mohit, CEO of BYJU'S India business, said, "As a mature organisation 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."

Over the last three years, BYJU'S has acquired multiple companies whose integration with its core business is now complete. BYJU'S India K-10 business, which includes Toppr, Meritnation, TutorVista, Scholar, and HashLearn, will now be consolidated as one business unit, other than Aakash and Great Learning which will continue to function as separate organisations.

(Edited by : Shoma Bhattacharjee)

First Published:Oct 12, 2022 8:55 PM IST