Edtech Company Aakash Bids Farewell to Digital Classroom Programme Amidst Job Cuts

Aakash Educational Services Limited (AESL), a coaching company, has reportedly discontinued its digital classroom project.

Multiple sources told Deccan Herald that the business has merged its Aakash Digital Classroom Program (AD-CRP) personnel with its “sales system,” which is in charge of marketing all Aakash services, including Aakash Digital.

“The AD-CRP team was part of the BYJU Datalabs_in-article-icon system. This staff has now been merged into the Aakash sales system, which is in charge of selling all Aakash products, including Aakash Digital. “This team is being expanded to support our 200-center expansion,” an Aakash spokeswoman reportedly stated.

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It is worth noting that around 750 staff joined Aakash’s digital classroom programme from the failing edtech startup BYJU’S, which formerly operated the offline coaching network.

This followed news last month that Aakash laid off approximately 200 staff between August and September. While several of the team members were apparently fired or asked to leave, the remaining AD-CRP staff were transferred to the coaching chain’s call center model or offline branches based on available positions.

According to the article, several employees were given the choice of taking a salary reduction from what they were previously earning at BYJU’S in order to remain working there. As per sources, layoffs have persisted for the previous two weeks, primarily affecting the “Associate level,” who made up the majority of the AD-CRP team.

However, retrenchments apparently occurred at the senior manager and manager levels.

“The new season starts in January. They have used the AD-CRP team for the last six to seven months of revenue. Now everyone has been laid off, regardless of performance. The rationale offered was that they no longer required this function in Aakash,” a source informed Deccan Herald.

It is worth noting that AESL was acquired by ailing edtech behemoth BYJU’S in a cash-and-stock transaction for $1 billion in 2021. In the aftermath, the two sides clashed over the share swap, since the Chaudhry family, which formed Aakash, refused to swap their shares.

On the other hand, Manipal Health Systems and Ranjan Pai’s family office (MEMG) have been increasing their interest in the company. In July, the Competition Commission of India (CCI) approved MEMG Family Office’s proposal to buy a significant share in Aakash.

Ranjan Pai, MEMG’s chairperson, is currently Aakash’s largest shareholder, owning almost 40% of the offline coaching chain.

Earlier this year, Aakash stated that it was on track to generate an operating revenue of INR 2,325.1 Cr in fiscal year 202-23 (FY23), up 63% from INR 1,421.2 Cr in the previous fiscal year.