Aakash Educational Services (AESL), a coaching centre partially owned by BYJU’S, has reportedly laid off around 80-100 employees in recent months. The move is aimed at restructuring and aligning operations to new business objectives.
The layoffs targeted senior and mid-level executives. Additionally, it is said to be a part of a strategic shift in the company’s business model under the Aakash 2.0 initiative.
The company is yet to confirm the exact number of employees affected. However, it stated that its biannual performance reviews and talent development cycles are part of an ongoing effort to consolidate roles and create new positions. AESL also expects to be net hirers by the end of the year, indicating further recruitment in the coming months.
In 2021, BYJU’S acquired Aakash in a $1 billion cash-and-stock deal. However, tensions have surfaced between BYJU’S and the Chaudhry family, founders of Aakash, over a share swap proposal, complicating the acquisition. Meanwhile, BYJU’S continues to face significant financial challenges, including layoffs, legal disputes and insolvency proceedings.
Recently, the Income Tax Department has issued notices to former employees of Byju’s, over the past ten days concerning unpaid tax deducted at source (TDS). Multiple employees have reported receiving these notices both via email and courier, raising concerns over tax compliance.
As Aakash navigates its transformation, BYJU’S is grappling with a severe financial crunch, ongoing court battles, and operational challenges, putting both companies in the spotlight amidst a turbulent phase.
