Why Aakash’s First Layoffs Since Byju’s Acquisition Signal More Than Just Cost Cutting

Aakash Educational Services has laid off 80–100 employees in its first cuts since Byju’s acquisition, signaling a shift with Aakash 2.0, leadership changes, and pending financials in India’s edtech.

I am Aadi, an MBA graduate in marketing and finance who has been following India’s startup and edtech story closely. My work looks at the shifts in business models and leadership decisions that impact both investors and operators.

Summary:

1. Aakash has let go of 80 to 100 employees in its first round of layoffs since Byju’s acquisition.

2. The move is tied to its Aakash 2.0 restructuring strategy rather than a simple cost-cutting exercise.

3. Senior and mid-level staff from departments linked to outdated business models were most affected.

4. Despite layoffs, the company says it will be a net hirer by year-end.

5. Leadership reshuffle and pending financial filings add layers of uncertainty to Aakash’s direction.

Layoffs are never just about numbers. When Aakash Educational Services Limited quietly trimmed its workforce by about 80 to 100 people, it was not just an edtech layoff story. This was the first such move since Byju’s shelled out nearly 940 million dollars to acquire Aakash in 2021. The fact that it took over two years for cuts to appear suggests they were less about panic and more about resetting priorities.

The people who lost their jobs were not entry-level hires but largely senior and mid-level staff, some with more than four years of experience. This detail matters. It points to a bigger rethink about which business models still fit into Aakash’s future. In a way, these cuts are less about trimming fat and more about reshaping muscle.

Aakash’s spokesperson did not confirm the number of exits but gave a curious assurance. The company is pushing its Aakash 2.0 strategy, which includes creating new roles, merging others, and hiring fresh talent. The company insists it will end the year as a net hirer. For anyone watching the broader edtech shake-up in India, this is a bold claim. Most rivals are downsizing with no such recovery plan in sight.

This restructuring comes against the backdrop of unfiled financials for FY23 and FY24. Reports suggest Aakash’s operating revenue is expected to cross 2,300 crore rupees for FY23, but without audited numbers the actual health of the business is hard to gauge. Investors and analysts are left guessing whether the company is still on track or navigating rougher waters than it admits.

Leadership shifts add another wrinkle. Deepak Mehrotra was brought in as managing director and CEO earlier this year. Fresh leadership often brings fresh playbooks, and these layoffs could be the first visible signs of his approach. Meanwhile, the Chaudhry family, who founded Aakash and still retain a stake, opted to stay partially independent rather than fully merge under Byju’s Think and Learn. That decision, made earlier this year, looks smarter now given Byju’s own troubles.

For entrepreneurs and investors, Aakash’s story is a reminder. Even when big money flows in and brand names change, the fundamentals of alignment and business model evolution remain non-negotiable. Layoffs are painful, but they also reveal where a company is headed. In Aakash’s case, the layoffs suggest it is not simply cutting costs but repositioning itself for a different kind of growth.

5 things to Do and Don'ts:

1. Do question layoffs. Ask whether they point to a cost crisis or a deeper business model shift.

2. Don’t assume acquisition money guarantees stability. Integration challenges are often bigger than expected.

3. Do watch leadership changes closely. A new CEO usually signals a new direction, not just cosmetic adjustments.

4. Don’t ignore missing financials. Lack of transparency is often a louder warning sign than layoffs.

5. Do remember that restructuring can mean hiring too. Cuts in one area may open opportunities in another.