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Exclusive: Aakash lays off employees amid strategic shift

Entrackr · 1y ago

Medial

Byju’s-owned Aakash Educational Services Limited (AESL) has laid off 80 to 100 employees over the past couple of months, according to sources familiar with the matter. “Aakash has fired anywhere between 80-100 employees, including senior and middle-level executives, who were impacted by the layoffs,” said one source, requesting anonymity. Several long-time employees, some with over 4 years of service, were also laid off in the past few weeks. An AESL spokesperson stated, “As a high-performance organization, our performance reviews, talent development interventions, and consequence management follow a biannual cycle. We are introducing new business models as part of the Aakash 2.0 strategy, which includes creating new roles, consolidating existing ones, and aggressively hiring new talent. Unlike other players in the category, we expect to be net hirers by the end of this year.” The spokesperson did not disclose the specific number of employees affected by the layoffs. This marks the first instance of layoffs at Aakash since its acquisition by Byju’s in April 2021, when the Bengaluru-based edtech giant spent around $940 million to acquire the company. However, the Chaudhry family, founders of AESL, refused to swap their remaining stake, citing governance concerns. Earlier this year, both companies withdrew their merger petition, continuing to operate independently under the Think and Learn brand. In April, Aakash appointed Deepak Mehrotra as its managing director and chief executive officer. The company is expected to surpass Rs 2,300 crore in operating revenue in FY23, according to its valuation report, though it has yet to file audited financial statements for FY23 and FY24.