Byju’s is reportedly facing financial challenges and is considering implementing another round of layoffs. This decision could potentially impact approximately 1,000 employees. The sales and marketing teams within the company are likely to bear the brunt of these job cuts as Byju’s aims to reduce costs and streamline its operations.
One of the key factors leading to this decision is Byju’s failure to make a quarterly interest payment of around $40 million on a $1.2 billion term loan B. As a result, Byju’s has taken legal action against Redwood investment management, filing a lawsuit in the New York Supreme Court. The company intends to stop the acceleration of the $1.2 billion term loan B facility and prevent Redwood from being the lender. The company alleges that Redwood, primarily involved in trading distressed debt, acquired a significant share of the loan in violation of the loan facility’s terms.
This potential round of layoffs comes just a few months after Byju’s previously terminated around 1,500 employees in February. It marked the second round of layoffs within a span of six months. Prior to that, in October 2022, Byju’s had already let go of 2,500 workers as part of its efforts to achieve profitability by March 2023. The company’s co-founder, Divya Gokulnath, had expressed the company’s intention to focus on building brand awareness and its future plan of hiring 10,000 teachers.
Byju’s, known for its innovative approach to education through its digital learning platforms, has experienced rapid growth in recent years. However, the company now faces financial challenges and is compelled to make tough decisions to address its financial obligations and ensure long-term sustainability. The layoffs are part of Byju’s strategy to optimise its resources, streamline its workforce, and navigate the evolving landscape of the edtech industry.