Tech News Summary:
- Byju’s is set to lay off another 1,000 employees due to a cash crunch, just six months after it let go of 5,000 people.
- Marketing managers have been asked to cut two sales and marketing staff members each, with around 150 marketing managers expected to be laid off.
- Despite the challenges faced recently, Byju’s is still one of India’s most successful EdTech startups with an extensive range of learning products including K-12 learning app ‘BYJU’S – The Learning App’, online tutoring platform ‘BYJU’S Classes’, and a coding platform for children, ‘BYJU’S Future School’.
Byju’s, India’s leading edtech giant, announced that it is axing approximately 1,000 jobs due to a cash crunch crisis. The layoffs represent about 10% of the company’s overall workforce.
The COVID-19 pandemic has had a significant impact on the education industry, with schools and colleges closed for months. This has led to a surge in online learning platforms like Byju’s, but the economic slowdown has also meant that many companies are struggling to stay afloat.
Byju’s founder, Byju Raveendran, stated in an email to employees that the company was not immune to the economic fallout caused by the pandemic. He said that the company’s revenue had been impacted, which has led to the need for cost-cutting measures.
The job cuts come after Byju’s raised $500 million in funding in April, led by private equity firm Silver Lake. However, the company’s aggressive expansion plans have hit a roadblock due to the financial crisis triggered by the pandemic.
Despite the job cuts, Byju’s remains optimistic about its future prospects. Raveendran said that the company would continue to invest in its products and offerings to provide students with a world-class education experience.
The edtech sector in India has seen a surge in demand recently, with startups like Unacademy, Vedantu, and Toppr also seeing significant growth. However, the recent developments at Byju’s serve as a reminder that even the biggest players in the industry are not immune to the economic challenges posed by the pandemic.
With schools and colleges yet to reopen fully, the edtech industry is expected to continue to grow. However, it remains to be seen how companies like Byju’s will navigate the financial challenges that lie ahead.