Physics Wallah, a prominent Indian edtech unicorn, has opted for strategic layoffs, citing a performance-based evaluation process in response to a challenging funding environment. The move aims to align with investor expectations for sustained profitability and efficient operations.
Addressing the layoffs, Chief Human Resources Officer Satish Khengre clarified that less than 0.8% of the workforce, numbering 70 to 120 individuals, faced transitions based on performance concerns. The decision reflects the company’s commitment to continuous assessment and optimization.
Profitability Claims and Investor Pressures
Despite Physics Wallah’s profitability claims, investors are increasingly emphasizing sustained profitability and prudent growth. The edtech unicorn, valued at $1.1 billion after a $100 million funding round last year, is adapting its operations to meet evolving investor expectations in the competitive edtech landscape.
Strategic Hiring Amid Changes
In a counterbalance to the layoffs, Physics Wallah has outlined plans to hire 1,000 new employees within the next six months, underscoring its dedication to growth and expansion. This strategic move aims to reinforce the company’s workforce and navigate shifts in the edtech industry.
Physics Wallah’s decision echoes a trend seen across the edtech sector, with industry leaders like Unacademy, Byju’s, and Vedantu also implementing workforce adjustments. The realignment is indicative of a broader industry shift toward sustainable growth and operational efficiency.
Financial Landscape and Expansion Efforts
The layoffs come as Physics Wallah strategically invests in expansion, including a Rs 500 crore investment in Kerala-based Xylem Learning earlier this year. Co-founder Prateek Maheshwari highlighted the company’s FY23 revenues of close to Rs 800 crore in a recent interview, showcasing its financial strength amid industry changes.