Edtech firm, Byju’s is set to cut down its existing 35,000-strong workforce by 11 per cent. That means, about 4,000 employees will be rendered jobless. This is reportedly part of a restructuring being undertaken at the company.
Byju’s is in the process of making its operating structures simpler, cutting costs and improving cash flow. The exercise will be concluded in a few weeks’ time and help make the firm more sustainable.
The company has witnessed quite a few senior-level exits over the past few months.
As per media reports, the latest round of layoffs will primarily impact Think & Learn, the parent company and will not affect the subsidiaries.
Arjun Mohan, who was recently appointed CEO of Byju’s India business is overseeing the restructuring process with full knowledge of those who have invested in the firm.
Since last year, 7,000 people have already been laid off by the edtech firm. About 600 were let go in its group companies — WhiteHat Jr and Toppr in a bid to achieve cost efficiency.
The firm is looking at ways to repay a $1.2 billion loan. It may have to sell off two of its businesses to try and stabilise the situation. However, the sale is expected to yield only about $800 million.
In June this year, Byju’s underwent a significant workforce reduction, impacting around 1,000 employees across various departments, including mentoring, logistics, training, sales, post-sales and finance. The company finds itself caught between its commitments to lenders, who expect timely repayments, and the need to secure additional capital through fundraising efforts.