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In an email to its employees that was circulated on various news platforms, Ravindran said several negative macroeconomic factors forced India’s most valuable startup to take this decision.
Baiju Ravindran has something to say
“I realized that there is a huge price to pay for walking this path to profitability. We are parting ways with 2500 of our colleagues to avoid role duplication across our businesses. So, it is with a heavy heart that we have to take this difficult decision,” the founder and CEO wrote in the letter.
“I am truly sorry for those who had to leave BYJU’s. You are not just a name to me. You are not a number. You’re not just five percent of my company. You are five percent of me,” he added.
Ravindran stated that the platform is working to achieve profitability at the group level in this financial year itself.
“Our business has significant economies of scale and unit economies that we believe we can leverage to achieve this mandate,” Ravindran said.
“However, our rapid organic and inorganic growth has created some inefficiencies, redundancies and duplications in our organization, which we need to rationalize to realize this. At the same time, we need to continue to reallocate our resources towards innovation and future-development oriented projects,” he added.
However, he said his top priority is to bring back laid-off employees by achieving sustainable growth. He said HR leaders have been directed to make all newly created relevant roles available to them continuously.
Here is the full text of the mail:
Dear Team Member,
Over the past couple of weeks, you’ve probably read or heard about our plans to rationalize the size of our team. I understand that some of you may be confused about this or hearing conflicting statements. So, I’m writing to you so you can hear directly from me what we’re doing, why we’re doing it, and how I feel about it.
First, let me briefly tell you about the rationale behind our current strategic plan. We have grown rapidly and massively globally over the last four years. Thanks to your relentless efforts and passionate commitment, we now reach and teach more than 150 million learners worldwide. During our hypergrowth years from 2018 to 2021, we regularly broke records in every business metric. We have expanded our family significantly by onboarding team members in our core business and from our acquisitions.
Then 2022 happened. This was the year when several negative macroeconomic factors changed the business landscape. These have forced tech companies around the world to focus on sustainability and capital-efficient growth. BYJU is no exception to this trend. Having expanded exponentially in the last four years, it is now time for us to grow sustainably. So, we decided to define our ‘path to profitability and sustainable growth’ – and walk on it with gusto.
We are working hard to achieve profitability at the group level in this financial year itself. Our business has significant economies of scale and unit economies, which we believe we can leverage to achieve this mandate. However, our rapid organic and inorganic growth has created certain inefficiencies, duplications and duplications in our organization which we need to rationalize to realize this. At the same time, we must continue to reallocate our resources towards innovation and future-development oriented projects.
I realized that there was a heavy price to pay for walking this profitable path. We are parting ways with 2500 of our colleagues to avoid role duplication across our businesses. We always pride ourselves on caring for our employees and retaining them forever. So, it was with a heavy heart that this difficult decision had to be taken. Certain business decisions must be made to protect the health of a large organization and to observe the constraints imposed by external macroeconomic conditions.
I really feel sorry for those who have to leave BYJU’s. You are not just a name to me. You are not a number. You’re not just five percent of my company. You are five percent of me.
I know nothing can replace your loss. And I totally understand if you’re upset about this. Because it breaks my heart too – more than you think. I hope you will believe me when I say that I tried my best to save your position. Please also know that this is not a reflection on your performance. And I promise you won’t walk out of this house alone. The rest of us will walk by your side and support your transition. I hope you’ll believe me when I tell you that we offer you the best possible exit package with extended medical insurance coverage for you and your family, outplacement services led by the industry’s best recruitment experts, fast-track full-and-final settlement, and a special offer that allows you to look for jobs while on our payroll. provision
I apologize if this process did not go as smoothly as we had hoped. We want this process to go smoothly and efficiently, we don’t want to rush through it. Therefore, we extend personal respect, sympathy and patience to all affected team members. I would like to emphasize that the total job cuts will not exceed five percent of our total strength.
I am always positive, I always think ahead and always try to make things better for everyone. But sometimes what BYJU wants is not BYJU’s demand. For those going forward, you might think I’d say right here that the next company you work for is lucky to have you. Certainly, the hands, hearts and minds that built the world’s leading EdTech company will always be in demand. But, no, what others see as ‘layoff’, I see as time. Bringing you back will now be my No. 1 priority while keeping our company on a steady growth path. I have already instructed our HR leaders to make all newly created relevant roles available to you on a continuous basis.
I want you to know that you are valued, that you are loved, and that I am forever grateful for your cooperation and the great privilege of leading you.
Yours faithfully,
Baiju Ravindran
Founder & CEO
Baijus