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Start-up unicorn in edtech In order to drastically reduce expenses, Byju’s group firms have let go of more than 2,500 workers. After two years of hypergrowth, the demand for edtech services has slowed down, according to sources cited in a Moneycontrol report.
Full-time and contract workers from Toppr and WhiteHat Jr., two of Byju’s group firms, were among those cut off. According to the article, the layoffs affected departments in sales and marketing, operations, content, and design.
“While on June 27 and June 28, Byju’s laid off over 1,500 employees from Toppr and WhiteHat Jr, the two companies it acquired over the last two years, on June 29, it sent out e-mails to nearly 1,000 employees from its core operations teams,” As per Moneycontrol report.
Around 1,200 workers have been let go from Toppr alone, including 300–350 permanent workers. Another 300 employees have been given the option of resigning or being informed that they won’t get pay for about one to one and a half months. About 600 contractual workers, whose contracts were set to expire in October or November of this year, were also laid off, according to the article.
Popular Indian start-ups like Unacademy, Cars24, and Vedanta have let go of more than 5,000 staff this year. Between January and March of this year, Ola lay off roughly 2,100 workers, followed by Unacademy (about 600), Cars24 (600), and Vedantu (400).
Aside from this, e-commerce company Meesho has fired 150 workers, furniture rental startup Furlenco has fired 200, influencer-led social commerce startup Trell has fired 300 workers, and OkCredit has fired 40 workers.
Recently, in a letter to employees, Unacademy co-founder and CEO Gaurav Munjal has said, “We must learn to work under constraints and focus on profitability at all costs. (Funding) winter is here. We must change our ways. We will focus on organic growth channels instead.”
He continued by saying that some think this funding winter might extend for 24 months. “We must adapt. This is a test for all of us. We must learn to work under constraints. We must focus on profitability at all costs… We must survive the winter.”
Although big-ticket fundings are currently slowing down because of the continued unpredictable market circumstances, experts claim companies are laying off workers to save money for shoring up profitability.
Leading venture capital firm Sequoia Capital recently informed the founders of the companies in its portfolio in a 51-page note that the time of rewarding hypergrowth at all costs is quickly coming to an end and that investors are turning their attention to businesses that can show current profitability.