In a recent effort to streamline costs, PhysicsWallah has reportedly undertaken a significant workforce restructuring, resulting in the termination of approximately 120 employees following a performance review, according to media sources. This marks the company’s inaugural round of layoffs since attaining unicorn status last year.
Satish Khengre, Chief Human Resources Officer at PhysicsWallah, clarified the situation, stating, “At PW, we routinely evaluate performance during mid-term and end-term cycles. For the cycle concluding in October, less than 0.8 percent of our workforce, ranging from 70 to 120 individuals with performance concerns, may be asked to transition.”
Following this development, PhysicsWallah joins a list of other Indian edtech companies, including Byju’s, Unacademy, Vedantu, Cuemath, and Teachmint, among others, that have collectively laid off 10,000 workers over the past year for various reasons.
Established in 2020 by the renowned YouTuber Alash Pandey, PhysicsWallah revealed that the company secured $100 million in funding from WestBridge Capital and GSV Ventures in June of the previous year, achieving a valuation of $1.1 billion.
Moreover, the company reported a remarkable 10x growth in operating revenue for the fiscal year 2022 (2021-22), reaching Rs 232.5 crore and yielding a profit of Rs 100 crore. Reports suggest that PhysicsWallah anticipates exceeding Rs 1,200 crore in revenue for the fiscal year 2023. In an interview with a media outlet last year, Pandey projected an EBITDA margin in the range of 40-45 percent.
Despite announcing plans in January of the current year to hire 2,500 employees across various positions in the quarter, the company has opted for this strategic move.
Khengre emphasized, “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 recognize their integral role in shaping the future of education technology.”
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