Aakash Educational Services Limited (AESL), owned by Byju’s, has laid off 80 to 100 employees in the past couple of months. The layoffs included both senior and middle-level executives, some of whom had been with the company for over four years, according to sources familiar with the situation.
One anonymous source stated, “Aakash has fired anywhere between 80-100 employees, including senior and middle-level executives, who were impacted by the layoffs.” While the exact number of employees affected has not been officially confirmed, it marks a significant change for the company.
AESL’s Response and Strategy Shift
In response to the layoffs, an AESL spokesperson said, “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 provide further details about the exact number of employees impacted. However, the statement suggests that the layoffs are part of a broader restructuring strategy under the Aakash 2.0 initiative, aimed at optimizing the company’s business model and improving performance. The company emphasized that while some roles are being consolidated, they plan to hire new talent aggressively, indicating future growth.
Layoffs Following Byju’s Acquisition
This marks the first instance of layoffs at Aakash since it was acquired by Byju’s in April 2021. The acquisition, valued at around $940 million, was a major move for the Bengaluru-based edtech giant. Despite the acquisition, the Chaudhry family, founders of Aakash Educational Services, declined to swap their remaining stake in the company, citing governance concerns. As a result, AESL and Byju’s continue to operate independently under Byju’s parent brand, Think and Learn.
Earlier this year, both companies also withdrew their merger petition, further solidifying their decision to function as separate entities.
Leadership Changes and Financial Outlook
In addition to the layoffs, Aakash has undergone leadership changes this year. In April 2023, Deepak Mehrotra was appointed as managing director and chief executive officer of AESL. Under his leadership, the company is expected to achieve significant financial growth. According to its valuation report, Aakash is projected to surpass Rs 2,300 crore in operating revenue for FY23. However, the company has yet to file its audited financial statements for FY23 and FY24, which will provide a clearer picture of its financial health.
Conclusion
The recent layoffs at Aakash Educational Services come as part of a larger strategic shift under the Aakash 2.0 plan. While the company is reducing its workforce in certain areas, it plans to be a net hirer by the end of the year. This move follows the company’s acquisition by Byju’s and its continued efforts to refine its business model and enhance its operational performance. With new leadership and anticipated growth in revenue, AESL is poised for transformation as it navigates the evolving landscape of the edtech industry.
