Aakash has integrated its employees from AD-CRP with its “sales system”, which is responsible for selling all Aakash offerings, including Aakash Digital
Sources added that layoffs have continued in the past two weeks and have largely impacted the “Associate level” as well as senior managers and the managers
This follows reports last month that Aakash fired around 200 employees between August and September, many of whom were laid off or told to resign
Coaching chain Aakash Educational Services Limited (AESL) has reportedly shut down its digital classroom programme.
Multiple sources told Deccan Herald that the company has integrated its employees from the Aakash Digital Classroom Program (AD-CRP) with its “sales system”, which is responsible for selling all Aakash offerings, including Aakash Digital.
“The AD-CRP team was part of BYJU’S
system. This team has now been integrated with Aakash sales system, which is responsible for selling all Aakash offerings, including Aakash Digital. This team is being expanded to support our 200 centre expansion,” an Aakash spokesperson reportedly said.
It is pertinent to note that more than 750 employees joined Aakash’s digital classroom programme from troubled edtech startup BYJU’S, which until March owned the offline coaching chain.
This follows reports last month that Aakash fired around 200 employees between August and September. While many from the team were reportedly fired or asked to resign, the remaining employees of AD-CRP were moved to the coaching chain’s call centre model or to offline branches as per available vacancies.
As per the report, many employees were also given the option of accepting a salary cut from what they were previously earning at BYJU’S to continue their stint at the company. Sources reportedly added that layoffs have continued in the past two weeks and have largely impacted the “Associate level”, which comprised the bulk of the AD-CRP team.
However, retrenchments also reportedly took place at the senior manager and the manager levels.
“The new season starts from (in) January. They have used the AD-CRP team for the last six-seven months of revenue. Now everyone has been laid off and this is irrespective of performance. The reason given was that they no longer need this role in Aakash,” a source told Deccan Herald.
It is pertinent to note that AESL was acquired by troubled edtech giant BYJU’S in a cash-and-stock deal for $1 Bn in 2021. The aftermath saw the two parties lock horns over the share swap as the Chaudhry family, which founded Aakash, refused to swap their shares.
On the other hand, Manipal Health Systems and Ranjan Pai’s family office (MEMG) have been increasing their stake in the company. In July, the Competition Commission of India (CCI) greenlit the proposed buyout of a substantial stake in Aakash by MEMG Family Office.
MEMG’s chairperson Ranjan Pai is now the largest shareholder of Aakash with about 40% stake in the offline coaching chain.
Earlier this year, Aakash said that it was well poised to clock an operating revenue of INR 2,325.1 Cr in the fiscal year 202-23 (FY23), up 63% from the INR 1,421.2 Cr in the previous fiscal year.
