Byju’s, once India’s most celebrated edtech startup, has been navigating one of the most turbulent phases in its history. As financial pressures mounted, the company implemented multiple rounds of layoffs that not only shook employee morale but also exposed critical gaps in internal and external communication.
Byju’s rapid ascent to a valuation of $22 billion during the pandemic turned into a harsh descent as demand softened and costs ballooned. The edtech giant struggled with liquidity issues, investor disputes, and mounting losses, forcing it into heavy cost-cutting measures that included layoffs and office closures.
According to Times of India, Byju’s initiated fresh layoffs in 2024 that impacted around 500 staff members, mainly from sales and tuition centre teams. This came on the back of earlier rounds that, combined, saw thousands of employees let go since late 2022.
In one particularly concerning mode of delivery reported by Business Standard and other outlets, layoffs were communicated via phone calls, with follow-up emails confirming the employee’s last working day and full and final settlement details. Many of these did not include standard notice periods, leading to confusion and frustration among affected employees.
Traditionally, companies manage large layoffs by first notifying employees internally, allowing leadership to address concerns and outline support measures. In Byju’s case, however, much of what the public understood about the job cuts came from social media and employee posts on LinkedIn before any official corporate communication. Many laid-off staff took to LinkedIn to share their ordeal, seeking support from their networks and highlighting the lack of prior notice and internal communication.
This phenomenon of employees breaking news on external platforms mattered for two reasons. First, it meant that external audiences, including prospective customers, investors and media, were hearing about sensitive corporate moves second hand, from individuals who were directly affected. Second, it suggested a breakdown in the usual protocol where internal communications precede or at least accompany public announcements in a coordinated way.
The broader narrative of Byju’s challenges, covered by Times of India in a recent feature on the company’s decline, underscored how these layoffs fit into a series of operational and governance issues facing the firm, including lawsuits, insolvency proceedings and auditor concerns.
The core of the reputational damage in this crisis was not just the layoffs themselves, large-scale job cuts were widely reported, but also how they were communicated.
Here’s where the communication strategy faltered:
• Internal communication lagged behind employee experience. Laid-off staff shared their transitions online before leadership could deliver a cohesive internal message, leaving colleagues and external audiences to interpret the company’s stance indirectly through social posts.
• No proactive narrative from leadership. In crises involving layoffs, leadership presence, empathetic, transparent updates, town halls, FAQs for employees help maintain trust among those remaining. Byju’s absence of timely, empathetic messaging widened the credibility gap between leadership and staff.
• External audiences formed perceptions through fragmented accounts. The lack of official corporate messaging meant journalists and analysts often had to rely on social posts and secondary sources, leading to narratives that focused heavily on internal disarray and morale issues.
In times of financial stress or restructuring, how a company talks to its own people matters as much as the decisions themselves. A communication breakdown sends several unintended signals:
• Employees feel undervalued and unprotected. When layoff notices come informally or without context, trust erodes quickly.
• External stakeholders assume governance weakness. Investors, partners and customers may read communication gaps as symptomatic of deeper leadership issues.
• Media narratives fill the silence. In the absence of clear corporate statements, journalists shape the story with available evidence, often highlighting negative angles.
The Byju’s layoff episode holds several lessons for leaders and communicators in any sector:
Byju’s layoff communication crisis reflects how mismanaged internal messaging can amplify reputational risks, especially in a digital age where employees share news instantly on social platforms. As organisations navigate downturns or restructuring, investing time and thought into how messages are delivered can be the difference between a reputational comeback and a prolonged credibility challenge.
For PR and communication professionals, this case reinforces a core principle: in a crisis, internal audiences are the first priority, and silence invites speculation rather than trust.
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