Embattled edtech platform Byju's has witnessed fewer sales this year, despite a 30 percent reduction in the process of producing educational products, as per a report by the Financial Express.
Some of the workers who were let go during the previous round of job cuts by the edtech platform are allegedly being hired back by Byju’s.
Embattled edtech platform Byju's has witnessed fewer sales this year, despite a 30 percent reduction in the process of producing educational products, as per a report by the Financial Express.
Most of the sales team members who are on the revenue-based payout models have yet to secure a sale for any course or subscription. On May 3, Byju's came up with its revenue-based payout model for the sales and exam prep teams. Employees at every level of the department will receive a portion of the money they bring in for the business by converting their sales leads into wage accounts under the new arrangement, which the company maintains is temporary.
The company's flagship, Byju's Learning App, has a fixed fee of Rs 12,000, including taxes. Byju's classes have an annual cost of Rs 24,000, and students who enroll in BTC (Byju's Tuition Center) must pay an additional Rs 36,000.
While speaking to the Financial Express, a sales employee said, "Many of us haven’t managed to sell any courses in the past week, and hence haven’t received any payouts. The perception around the brand remains a challenge for us when we try and convert.”
Expressing apprehension about the performance-based model amid a delay in salary rollout and an extreme financial crunch in the company, as per the report, an employee said, “Quota-based incentives are common in sales roles; however, with our regular salaries suspended, it adds further uncertainty to our immediate future.”
Some of the workers who were let go during the previous round of job cuts by the edtech platform are allegedly being hired back by Byju’s, but at lower pay than they were in their prior positions. Rehirees are receiving offers of compensation that are 30–40 percent less than their previous salary, as per the report.
Recently, at a conference with almost 1,500 managers and sales workers, Byju Raveendran, the company's founder, revealed a change in the sales approach of the business. Managers will function more as mentors than as taskmasters under the new approach, he said.
Raveendran suggested that the associates ask their friends to sell and take on the role of manager in order to grow their teams. According to the study, Raveendran anticipates having 50,000 salespeople within the next year.