Indian unicorn in edtech About 120 employees of PhysicsWallah were let go following a performance review. This is the first time that layoffs at one of India's only profitable edtech companies have been documented.
In a statement, the corporation stated that the layoffs were a component of the cycle of performance reviews rather than a cost-cutting strategy.
Satish Khengre, Chief Human Resources Officer at PhysicsWallah said in a statement, "At PW, we regularly assess performance through mid-term and end-term cycles. For the cycle ending in October, less than 0.8 percent of our workforce, ranging from 70 to 120 individuals with performance concerns—may be asked to transition.”
The CHRO also noted that the company plans to hire an additional 1,100 employees in the next two quarters.
“Our primary focus remains on fostering a dynamic, high-performing team. We plan to hire an additional 1,000 employees in the next six months, reinforcing our commitment to growth. We deeply value the dedication of our existing employees and recognize their integral role in shaping the future of education technology,” the edtech’s CHRO said.
The company recorded sales of Rs 780 crore for FY 2022–2023, an increase from Rs 233 crore recorded for FY 22.
Edtech has recently ventured into undergraduate residential engineering programmes, placing a significant wager on the upskilling market outside of the K–12 sector. In addition, the business has formed about ten joint partnerships and acquisitions to grow outside of the NEET/JEE test preparation industry.
In 2020, Prateek Maheshwari and Alakh Pandey created the edtech unicorn. With $100 million raised thus far from GSV Ventures and WestBridge Capital, the company is valued at $1.1 billion.
Since last year, the edtech industry has experienced the greatest number of layoffs.
This is because most edtech players have not achieved profitability and have been looking for cost cutting measures amid lack of funding.