In a recent cost-restructuring exercise, the PhysicsWallah reportedly layoffed about 120 employees after a performance review meeting, as per the media reports. It is believed to be the first layoffs by the firm after earning the unicorn tag last year.
“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,” Satish Khengre, CHRO, PW, said in a statement.
After these layoffs, Physicswallah joined a chain of other Indian edtech companies including Byju’s, Unacademy, Vedantu, Cuemath and Teachmint among others, which have fired 10,000 workers in the last years due to multiple reasons.
The edtech firm founded in 2020 by the popular Youtuber Alash Pandey, it also said that the company raised $100 million from WestBridge Capital and GSV Ventures at a valuation of $1.1 billion in june last year.
Additionally, it reported a 10x growth in its operating revenue in FY 22 (2021-22) to Rs 232.5 crore, making a profit of Rs 100 crore.
According to the reports, the company anticipates surpassing Rs 1,200 crore in revenue in the fiscal year 2023. In an interview with e media outlet last year, Pandey stated that the projected EBITDA margin is expected to be in the range of 40-45 percent.
Despite announcing plans in January of this year to recruit 2,500 employees across various positions in the quarter, the company has decided to make this move.
“Our primary focus remains on fostering a dynamic, high-performing team. We plan to hire an additional 1,000 employees in the next six months, reinforcing our commitment to growth. We deeply value the dedication of our existing employees and recognise their integral role in shaping the future of education technology,” added Khengre.