Byju’s-owned edtech startup WhiteHat Jr sacks 300 employees
- ByStartupStory | June 29, 2022
WhiteHat Jr., a beleaguered platform that is part of the edtech behemoth BYJU, has fired some 300 staff members after more than 1,000 employees quit after being invited to come back to work in April or May. Most of the sacked workers this time were from the platform’s sales and code-teaching teams, and some of them had worked in Brazil.
The business stated in a statement that “WhiteHat Jr is committed to giving young pupils a high-quality education while continuing to expand its business. We are realigning our staff with our business priorities to speed up outcomes and best position the company for long-term success. WhiteHat Jr. keeps putting the needs of the students first and is investing in expanding its network of excellent teachers.”
WhiteHat Jr. was purchased by BYJU’s in July 2020 for around $300 million. It reported a staggering loss of Rs. 1,690 crore in the fiscal year 2021, even while its expenses rose to Rs. 2,175 crore, up from Rs. 69.7 crore in the prior year.
In the month of April and May, Out of its 5,000 employees, almost 1,000 quit. This includes teachers who are employed on a contract basis and are therefore not full-time employees. WhiteHat Jr. also closed its school division, which had aimed to provide its coding curriculum to 10 lakh kids by the start of the following academic year.
WhiteHat Jr’s foray into teaching guitar and piano skills online hasn’t been particularly successful so far. According to the business, the laid-off workers received one month’s pay as part of their severance package.
Krishna Vedati was appointed President of Global Growth and Strategic Initiatives by BYJU’s on Tuesday. The company also reorganised the top management at Tynker, a K-12 creative coding platform that it had purchased for $200 million as part of its US growth. Last year, the unicorn edtech company acquired at least 10 companies for a total transaction value of around $2.5 billion.
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