Byju's-owned Aakash lays off employees amid strategic shift: Report

Byju’s-owned Aakash Educational Services Limited (AESL) has reportedly laid off 80 to 100 employees over the past few months as part of a broader strategic shift, Entrackr reported, quoting sources. The layoffs, which impacted senior and mid-level executives, are seen as part of Aakash’s ongoing restructuring efforts, the report said.

“Aakash has terminated the employment of between 80 and 100 employees, including some long-serving staff members with over four years of experience,” a source mentioned in the report revealed. The layoffs primarily targeted those working in departments aligned with business models that are undergoing change.

In a statement, an AESL spokesperson addressed the restructuring process: “As a high-performance organisation, we follow a biannual cycle of performance reviews, talent development, and consequence management. Under our Aakash 2.0 strategy, we are creating new roles, consolidating others, and actively hiring talent. Unlike other players in the sector, we anticipate being net hirers by the end of the year.” The spokesperson, however, did not specify the exact number of employees impacted by the downsizing.

This marks the first instance of layoffs at Aakash since its acquisition by Byju’s in April 2021. The edtech giant had spent around $940 million to acquire AESL, though the Chaudhry family, the original founders, retained their stake, citing governance concerns.

Despite initial plans for a merger, both companies withdrew their petition earlier this year, opting to continue operating independently under Byju’s Think and Learn brand.

Aakash has recently undergone major leadership changes, with the appointment of Deepak Mehrotra as managing director and CEO in April. The company is expected to surpass Rs 2,300 crore in operating revenue for FY23, according to valuation reports. However, it has yet to file its audited financial statements for FY23 and FY24, leaving the full scope of its financial health uncertain.