Byju's CEO Admits Not So 'Smooth' Layoffs, Releases Internal Letter
Byju's CEO Raveendran seeks forgiveness for unsmooth layoffs to employees in an internal email. He also indicated that the decision is due to the macroeconomic condition which is important to sustain the organisation
The Chief Executive Officer (CEO) and founder of one of the worlds leading Ed-tech companies Raveendran clarifies the decision to fire 2,500 employees in an internal letter to the employees. He mentioned What, Why and How the plan to rationalise the employees will go ahead.
In the letter, Raveendran shows gratitude towards employees for their relentless effort and commitment which made Byjus a leading company and reached 150 million learners across the globe. He also mentioned the period from 2018 to 2021 when Byju’s saw exponential growth by adding more learners and through acquisition which led to a significant increase in the workforce in the company.
While mentioning about 2022, He wrote “ This is the year when many adverse macroeconomic factors changed the business landscape. These have compelled tech companies around the world to focus on sustainability and capital-efficient growth. BYJU’S is no exception to this trend. Having expanded exponentially in the past four years, it is now time for us to grow sustainably. So, we decided to define our ‘path to profitability and sustainable growth - and to walk on it in earnest.”
While admitting the hardship he added “We are working hard towards achieving profitability at the group level in this financial year itself. Our business has substantial economies of scale and unit economics, which we believe we can leverage to achieve this mandate.” He also mentioned the reasons for this hardship as their organic and inorganic growth that created some inefficiencies, redundancies and duplication within the organization which needs to be rationalised.
He further said “I realize that there is a huge price to pay for walking on this path to profitability. We are having to part ways with 2500 of our colleagues to avoid role duplication across our businesses. We have always taken pride in taking care of our employees and retaining them forever. So, it is with a heavy heart that we have had to take this difficult decision. Some business decisions have to be taken to protect the health of the larger organization and pay heed to the constraints imposed by external macroeconomic conditions.”
In the end, he promises a smooth transition for all the employees who are going out. He also mentioned the exit package for the employees which includes extended medical insurance coverage for you and your family members, outplacement services led by some of the industry’s finest recruitment specialists, fast-track full-and-final settlement, and a special provision to allow them to look for jobs while on our payroll.