Bollywood actor and entrepreneur Suniel Shetty, also known fondly as Anna, has condemned edtech unicorn Byju’s for firing around 2,500 employees from its total workforce. He acknowledged that it was not an easy decision to make for the edtech firm. The Hera Pheri actor also said he hopes that those who would be impacted by the layoffs “are able to get back on their feet at the earliest.”
Shetty urged new-age startups to not worry much about achieving the unicorn/soonicorn/minicorn status. He added he gets jitters when every second startup claims that it is going to become a unicorn in the next three years in a recent LinkedIn post.
The actor, also seen in movies like Dhadkan and Main Hoon Na, also advised companies to think of it as a long-term game and that being stable and slow is just as great.
He noted, “Don’t let that be the goal. Apple, Google, Disney, etc. were focused on doing what they did, really well, Just build a solid business, valuations will follow. Most importantly, switch to the bootstrapping mindset.”
Shetty advised startups, existing and up-and-coming, to rely on cash flow for funding growth, focusing on profitability and keeping customers at the top of their priority list.
He added that despite an upsurge in valuations and fundraising activities in the last few years, global sentiment has turned conservative. While he highlighted the grim realities facing the global economic and business environment, Shetty said he is a firm believer of the India story.
He wrote, “I continue to believe in the India story. Among other factors, our population and its aspirations still present good businesses a huge opportunity to continue their growth, even if it’s at a slower rate than earlier.”
Earlier, a Byju’s spokesperson told Business Today that layoffs “will not happen immediately” but will happen over “a period of six months.” Byjus is also planning to hire 10,000 teachers more in the coming year.
According to the company, these steps have been taken in order to be profitable in FY23, avoid redundancies and duplication of roles. The company also said in a statement that it would optimise its marketing budgets to ensure “more efficient growth.”
The edtech firm announced its FY21 results in September. Its losses increased from Rs 231.69 crore in FY20 to a massive Rs 4,588.75 crore in FY21.
Also read: After announcing mass lay-offs, Byju’s raises $250 million
Also read: Byju’s to lay off 2,500 employees over six months, aims profitability by FY23