Physics Wallah Lets Go of Over 100 Employees

• ByStartupStory     |    November 20, 2023

Physics Wallah, a notable edtech unicorn, has recently undergone a workforce restructuring, leading to the layoff of approximately 70 to 120 employees. This move aligns with the company’s assertion that it is part of a performance-based evaluation process.

Satish Khengre, Chief Human Resources Officer, stated, “At PW, we regularly assess performance through mid-term and end-term cycles. For the cycle ending in October, less than 0.8% of our workforce, ranging from 70 to 120 individuals with performance concerns—may be asked to transition.”

Despite being backed by investors such as Westbridge and GSV Ventures and achieving unicorn status last year with a $100 million funding round at a valuation of $1.1 billion, Physics Wallah’s decision to trim its workforce comes amid a cautious funding environment. While the company asserts profitability, the current trend reflects investors’ increasing selectivity, urging portfolio companies to pursue growth with a focus on sustained profitability.

This move echoes a broader trend in the edtech sector, where startups like Unacademy, Byju’s, and Vedantu have also implemented employee layoffs. The challenging reality for startups is often the trade-off between rapid growth and efficient operations, as the pressure to expand quickly can lead to high cash burn.

In response to the layoffs, Khengre stated, “We plan to hire an additional 1000 employees in the next six months, reinforcing our commitment to growth.”

Earlier this year, Physics Wallah had disclosed a substantial investment of Rs 500 crore in Xylem Learning, based in Kerala, as part of its strategic expansion initiatives. In an interview with TOI in July, co-founder Prateek Maheshwari highlighted that the company concluded FY23 with close to Rs 800 crore in revenues, underscoring its financial standing despite the recent workforce adjustments.

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