Physicswallah, an EdTech unicorn established in 2020, has announced layoffs of 0.8% of its 12,000 employees after the October 2023 Performance Review Cycle.
Announcing the layoffs, Satish Khengre, CHRO of PhysicsWallah informed all employees in an email, “At PW, we regularly assess performance through mid-term and end-term cycles. For the cycle ending in October, less than 0.8 per cent of our workforce, ranging from 70 to 120 individuals with performance concerns—may be asked to transition.”
This marks the first instance of layoffs announced by the edtech company as part of its growth strategy. In addition, the CHRO also revealed plans for new hires, stating, 'Our primary focus remains on fostering a dynamic, high-performing team. We intend to hire an additional 1,000 employees in the next six months.'
In the company-wide email, the CHRO further emphasized, “We deeply value the dedication of our existing employees and recognize their integral role in shaping the future of education technology.”
With this development, the company joins other edtech layoffs, including Byju’s, Unacademy, Vedantu, and Cuemath, resulting in the termination of over 10,000 workers in the past two years. The EdTech industry in India is navigating through turbulent times; for instance, Byju’s layoffs were announced as part of a cost-cutting measure following the exit of key investors and legal battles with others.
Contrastingly, for PhysicsWallah, which secured $100 million in funding from WestBridge Capital and GSV Ventures at a valuation of $1.1 billion in June 2022, the layoffs were framed as a strategic move by a high-performing team focused on growth.
Here's the list of top companies announcing layoffs in 2023 leading to the transformation of the job market in India.