Edtech Unicorn Physicswallah Cuts 120 Employees in a Bid to Reduce Costs
In a move to cut costs, educational technology company Physicswallah has laid off 120 employees after conducting a performance review process. The layoffs were initiated as part of a cost-cutting exercise within the company, according to sources cited by Entrackr, who were the first to report on the developments.
The laid-off employees included individuals from various departments, including content and operations. Sources also suggested that the number of affected employees could potentially be higher than reported. These employees were supposedly called into random meetings without being provided concrete reasons for their termination.
However, Physicswallah has refuted these claims, stating that the layoffs were carried out as part of their regular performance review cycle and were intended as a cost-cutting measure. Satish Khengre, CHRO of PhysicsWallah, explained, 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. Our primary focus remains on fostering a dynamic, high-performing team.
This recent move comes after Physicswallah, founded in 2020 by Alakh Pandey and Prateek Maheshwari, successfully raised $100 million in funding from prominent investors like WestBridge Capital and GSV Ventures. With a valuation of $1.1 billion, the edtech unicorn aims to revolutionize the education sector with its innovative approach.
Unfortunately, Physicswallah is not the only edtech platform that has resorted to cost-cutting measures. Since last year, several major players in the industry, such as Byju’s, Unacademy, Vedantu, Cuemath, and Teachmint, have also implemented similar measures, leading to the layoff of over 10,000 employees.
Despite the company’s claim that the layoffs were carried out as part of their regular evaluation process, it is crucial to consider the impact this move will have on the employees affected. As with any restructuring or downsizing exercise, it is essential to strike a balance between financial sustainability and the well-being of the workforce.
Looking ahead, Physicswallah intends to hire an additional 1,000 employees within the next six months, reaffirming its commitment to growth and development. The company acknowledges the important role its existing employees play in shaping the future of education technology and expresses gratitude for their dedication.
The edtech industry continues to evolve, with advancements in technology providing new opportunities for both educators and learners. As companies navigate this dynamic landscape, it is crucial to remember the human element and prioritize the welfare of employees.
Overall, Physicswallah’s recent layoffs reflect the challenges faced by edtech platforms in maintaining financial stability amidst a competitive market. Nevertheless, the company remains optimistic about the future and is determined to continue making a significant impact in the field of education technology.
