Ed-tech company Byju's is preparing to turn profitable by March 2023. For this, the company plans to reduce its expenditure. The company plans to reach a profitable position by reducing its marketing and operating costs. For this, the company will lay off five percent or about 2,500 employees in the next six months.
The company's co-founder Divya Gokulnath told the news agency PTI that the company will start focusing on increasing brand awareness overseas through new partnerships. In addition, it will also recruit 10,000 teachers for business in India and overseas.
Gokulnath said that we have created significant brand awareness across India. Now we plan to reach a profit position by March 2023. For this, we have prepared a plan. The marketing budget will be minimized under the scheme. Expenses will be prioritized.
He told that this new scheme will help us to increase efficiency, and avoid waste. Our hybrid learning model is 'Tuition Centre' and our 'online learning model' which is Byju's classes or our 'Learning App'. We have planned to hire 10,000 teachers.
According to the FY21 results, the company's sales decreased by 3% annually to Rs 2,428 crore on a consolidated basis, from Rs 2,511 crore the year before. In comparison to the adjusted loss of Rs 231.69 crore in FY20, BYJU's recorded a loss of Rs 4,589 crore in FY21 (2019-20).
The company stated in a statement on Wednesday that the layoffs are a move toward cost-cutting and overall profitability. However, BYJU's also asserted that it intended to increase its present staff of 20,000 teachers by roughly 10,000 over the course of the following year.