PhysicsWallah Lays Off 120 Employees After Performance Review: Report

Edtech firm PhysicsWallah has reportedly laid off 120 employees after a performance review process. The company said in a statement that less than 0.8 per cent of its total workforce will face the impact of the performance-based evaluation process. The company has around 12,000 employees. The move comes more than a year it became a unicorn and raised $100 million from investors like WestBridge Capital and GSV Ventures. Entracker, which first reported the job cuts, PhysicsWallah made the move citing cost-cutting exercise.

The outlet said firing has happened in content, operation and a few other departments. Employees were asked to go in random meetings without "concrete reasons", Entracker further said.

The company, however, denied it was a mass firing.

"At PW, we regularly assess performance through mid-term and end-term cycles. For the cycle ending in October, less than 0.8 per cent of our workforce, ranging from 70 to 120 individuals with performance concerns - may be asked to transition," PhysicsWallah's Chief Human Resources Officer (CHRO), Satish Khengre, was quoted as saying in a statement by news agency PTI.

"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," Mr Khengre further said in the statement.

Several edtech companies, including unicorns like BYJU'S and Unacademy had hired excess staff to meet the sudden spike in demand for online classes during the Covid period.

"We deeply value the dedication of our existing employees and recognise their integral role in shaping the future of education technology," Mr Khengre said.

PhysicsWallah was founded by Alakh Pandey, who used to take online classes on YouTube, in 2020. The company's valuation was $1.1 billion in June last year.