'What Others See As Lay-Off, I See As Time Off': Byju Raveendran In Email To All Employees

Byju Raveendran in an e-mail writes to employees about 2, 500 layoffs due to restructuring at the world’s biggest start-up

Byju Raveendran, founder and CEO, Byju's.

Source : Getty

Byju Raveendran, chief executive of the Indian multinational education technology (ed-tech) firm BYJU's, on Monday wrote a mail to  over 50,000 employees explaining the rationale behind 2500 layoffs at the world’s most valued ed-tech start-up.

 “Over the past couple of weeks, you would have read or heard about our plans to rationalize our team size. Some of you, I understand, might be confused about this or may be hearing conflicting statements. So, I am writing to you so that you hear directly from me on what we are doing, why we are doing it and how I feel about it,” Byju in mail to his team members. A copy of the mail has been reviewed by ABP News.

A BYJU’s spokesperson confirmed to ABP News about the CEO’s communiqué with the employees.

According to Byju, the company scaled up quickly and massively across the world in the last four years with a reach of over 150 million learners globally. 

“We also expanded our family significantly both in our core business and by onboarding team members from our acquisitions. Then 2022 happened. 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,” said Byju’s mail.

Byju acknowledged that the company’s rapid organic and inorganic growth has created some inefficiencies, redundancies, and duplication within the organization that needs to be rationalized in a bid to be profitable by end of this fiscal.

“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,” read Byju’s mail.

The company promised an exit package including extended medical insurance coverage for employees and 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 the employees to look for jobs while on the company’s payroll.

“I seek your forgiveness if this process is not as smooth as we had intended it to be. While we want to finish this process smoothly and efficiently, we don’t want to rush through it. So, we are informing all the affected team members individually with the dignity, empathy, and patience they deserve. I want to emphasize that the overall job cuts are not more than five percent of our total strength,” said Byju’s mail to employees.

BYJU’s was valued at $22 billion as of March 31, 2022, making it the world’s most valued ed-tech startup.

“To those who will be moving on, you probably think this is where I will say the next company you will work with will be lucky to have you. Sure, the hands, hearts and minds that built the world’s leading EdTech company will always be in demand. But, no, what others see as ‘layoff’, I only see as time off. Bringing you back by putting our company on a sustainable growth path will now be the number 1 priority for me. I have already instructed our HR leaders to make all the newly created relevant roles available to you on an ongoing basis,” read Byju’s mail.

BYJU’s losses widened in the last four years to over Rs 4,500 crore last fiscal year.

“I want you to know that you are valued, you are loved, and that I will forever be grateful for your contributions and for having the great privilege of leading you,” said Byju.

Here are screenshots of the mail that Byju forwarded to his employees:

Meanwhile, days after shutting down Kerala office, Byju’s is now facing allegations of layoffs in Karnataka. Sources close to the development told IANS that the employees are being asked to immediately resign or face terminations that could affect their career prospects.