Aakash Educational Services (AESL), owned by Byju’s, has laid off around 80 to 100 employees over the past few months, according to a media report. These job cuts have affected senior and middle-level executives, along with some long-serving employees, some of whom had been with the company for over four years.
Significant Layoffs
This is the first major round of layoffs at Aakash since Byju’s acquired the company in April 2021 for approximately $940 million. The layoffs come as a surprise to many, especially since Aakash has been a strong performer in the test preparation sector.
Aakash’s Response
An AESL spokesperson commented on the situation, saying that the company regularly conducts performance reviews and makes necessary changes as part of their talent development strategy. They emphasized that the layoffs were part of the company’s Aakash 2.0 strategy, which includes creating new roles, merging existing ones, and hiring new talent.
The spokesperson also highlighted that despite the layoffs, Aakash expects to hire more employees by the end of the year, indicating that the company is still looking to expand its operations.
Unclear Number of Layoffs
Although the company confirmed that some employees were let go, they did not disclose the exact number of employees impacted by the layoffs. Several media reports, however, suggest that 80 to 100 employees have been let go.
Merger with Byju’s Withdrawn
Earlier this year, Aakash and Byju’s decided to withdraw their merger petition. Despite the acquisition, both companies continue to operate independently under the Think and Learn brand, with Aakash focusing on its test preparation business.
Aakash’s Future Plans
In April 2023, Deepak Mehrotra was appointed as the new Managing Director and CEO of Aakash Educational Services. The company is projected to reach Rs 2,300 crore in operating revenue for the fiscal year 2023. However, the final audited financial statements for FY23 and FY24 are still pending.
While the layoffs have raised concerns, the company’s future plans and expected growth may lead to new opportunities for those seeking employment in the test preparation sector.
