The layoffs at Aakash affected both senior and middle-level executives, with some long-time employees also being let go
Without confirming the number of employees impacted by the layoffs, a spokesperson of AESL cited a shift in the business model as the reason behind it
AESL acquired BYJU’S in 2021, but the two parties were involved in a legal dispute. Earlier this year, MEMG chairperson Ranjan Pai emerged as the largest shareholder of Aakash
Inc42 Daily Brief
Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy
Offline coaching centre Aakash Educational Services Limited (AESL), in which embattled BYJU’S owns some stake, reportedly fired about 80-100 employees over the last couple of months.
Citing sources, Entrackr reported that the layoffs affected both senior and middle-level executives, with some long-time employees also being let go.
Without confirming the number of employees impacted by the layoffs, a spokesperson of AESL cited a shift in the business model as the reason behind it.
“As a high-performance organisation, our performance reviews, talent development interventions, and consequence management follow a biannual cycle. We are introducing new business models as part of the Aakash 2.0 strategy, which includes creating new roles, consolidating existing ones, and aggressively hiring new talent. Unlike other players in the category, we expect to be net hirers by the end of this year,” the spokesperson told the publication.
It is pertinent to note that AESL was acquired by BYJU’S, which is now undergoing insolvency proceedings, in a cash-and-stock deal for $1 Bn in 2021. However, the two parties have been at loggerheads in the past over the share swap. The Chaudhry family, which founded Aakash, refused to swap their shares.
Meanwhile, Manipal Health Systems and Ranjan Pai’s (MEMG) Family Office LLP has been increasing its stake in Aakash. In July 2024, the Competition Commission of India (CCI) approved the proposed buyout of a substantial stake in Aakash by MEMG Family Office. With this, MEMG’s chairperson Ranjan Pai emerged as the largest shareholder of Aakash with about 40% stake in the company.
In FY23, Aakash’s operating revenue likely stood at INR 2,325.1 Cr, a 63% increase from the INR 1,421.2 Cr in the previous fiscal year.
Meanwhile, BYJU’S is caught in a whirlwind of troubles. The company has been in the news for all the wrong reasons over the last year or so due to a severe cash crunch, multiple layoffs, legal cases, among others. It is currently undergoing insolvency proceedings and some of its lenders have moved to different courts against the resolution professional appointed for its insolvency process.
Note: We at Inc42 take our ethics very seriously. More information about it can be found here.