Byju’s, an edtech firm, plans to reduce its existing 35,000-person workforce by 11%. This means that approximately 4,000 employees will be laid off. This is reportedly part of the company’s restructuring efforts.
Byju’s is simplifying its operating structures, cutting costs, and improving cash flow. The exercise will be completed in a few weeks and will help the firm become more sustainable.
Over the last few months, the company has seen a number of senior-level exits.
According to media reports, the latest round of layoffs will primarily affect Think & Learn, the parent company, rather than the subsidiaries.
Arjun Mohan, the newly appointed CEO of Byju’s India business, is overseeing the restructuring process with full knowledge of the firm’s investors.
The edtech firm has already laid off 7,000 people since last year. In order to save money, its group companies — WhiteHat Jr and Toppr — laid off 600 people.
The company is considering how to repay a $1.2 billion loan. To try to stabilise the situation, it may have to sell off two of its businesses. However, the sale is only expected to generate about $800 million.
Byju’s underwent a significant workforce reduction in June of this year, affecting approximately 1,000 employees across various departments such as mentoring, logistics, training, sales, post-sales, and finance. The company is caught between its obligations to lenders, who expect timely repayments, and the need to raise additional funds through fundraising efforts.