SRK EXIT SIGNALS BYJU'S GROWING STRUGGLE IN EDTECH SPACE

India’s most valuable edtech giant Byju’s has hit another roadblock, which might not be surprising if one goes by reports highlighting layoffs, lender concerns, change of auditors, and more at the startup.

- ABHISHEK NAIR

The company might lose out on its biggest Indian endorsement in the form of actor Shah Rukh Khan as recent news reports suggest that the Bollywood superstar might not renew the deal with the edtech giant. The decision would be a massive blow to the company, which signed the deal with SRK back in 2017.

Khan pulling out of the endorsement deal would be significant in light of the edtech company’s woes with the worsening public image.

Though Byju’s saw layoffs when it fired 5% of its workforce, totalling around 2,500 employees in October 2022, it saw history repeat itself in February 2023 when the company laid off some 1000 individuals from senior roles.

But the June 2023 layoffs, which primarily focused on workers in the sales and finance departments of Byju’s, are part of the company’s long-term cost-cutting and profitability plans as per sources.

“I was laid off with many other employees and we came to know that the action was related to cost-cutting and profitability plans at Byju’s. I was told that my performance is not meeting the desired target,” stated a former employee in Mumbai who was working with the Business development team.

“I can’t get into the tactics but aggressive sales strategy was an immense issue as we were under constant pressure,” added the Mumbai-based individual.