Physicswallah lays off 120 employees after performance review

Physicswallah, India's only profitable edtech unicorn, trims its workforce by 120 employees following a performance evaluation, marking the company's first reported instance of layoffs. The decision, attributed to a cost-cutting initiative, reflects a broader trend in the Indian edtech sector, with companies like Byju’s, Unacademy, Vedantu, Cuemath, and Teachmint collectively letting go of over 10,000 employees amid a prolonged funding downturn.

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

Founded in 2020 and achieving unicorn status in June of the following year with a $100 million investment at a valuation of $1.1 billion, Physicswallah reported a significant 10x growth in operating revenue in FY22, reaching Rs 232.5 crore and a profit of nearly Rs 100 crore. The company anticipates its revenue to exceed Rs 1,200 crore in FY23, with an EBITDA margin of 40-45 percent.

Despite the layoffs, Physicswallah expressed a commitment to growth, with plans to hire an additional 1,000 employees in the next six months. Khengre emphasized, "Our primary focus remains on fostering a dynamic, high-performing team. We deeply value the dedication of our existing employees and recognize their integral role in shaping the future of education technology."

In a strategic move, Physicswallah has also ventured into the undergraduate residential engineering program as part of its broader investment in the upskilling segment.