Byju’s-owned Aakash Educational Services Limited (AESL) is also facing a financial crisis. Aakash Educational Services Limited has reportedly laid off 80 to 100 employees in recent months.
According to a report by Entrackr citing sources, senior and middle level executives have been laid off. A source in the report said that the company has fired 80-100 employees, including senior and middle level executives, who were affected by the layoffs.
The report further states that several long-term employees were also laid off in recent weeks, some of whom had a service period of over four years. An AESL spokesperson told the publication, “As a high performance organisation, our performance reviews, talent development interventions and consequence management follow a half-yearly cycle.
The company said that we are introducing new business models as part of the Aakash 2.0 strategy, which includes creating new roles, strengthening existing roles and aggressively hiring new talent. Unlike other players in this category, we expect to be net hirers by the end of this year.
The spokesperson did not provide the specific number of employees affected by the recent layoffs at the institute. This is the first case of job cuts at Aakash since it was acquired by Byju’s in April 2021, when the Bengaluru-based edtech giant invested about $940 million in the company. However, the Chaudhary family, the founders of Aakash Educational Services Limited, chose not to exchange their remaining stake, citing governance-related concerns. Earlier this year, both Aakash and Byju’s decided to withdraw their merger petition, allowing them to continue operating independently under the Think and Learn brand.
In April, Akash appointed Deepak Mehrotra as its managing director and chief executive officer. According to valuation reports, the company is projected to cross Rs 2,300 crore in operating revenue for FY23. However, it is yet to submit audited financial statements for FY23 and 2024.
