Byju’s is reportedly considering a workforce reduction of up to 5,000 positions in the upcoming weeks. As per the reports, the prominent Indian ed-tech company is looking for significant job cuts as part of a cost-cutting strategy during a comprehensive business restructuring.
10,000 laid off in last two years
Citing sources familiar with the situation, the report suggests that these potential job cuts are a response to a postponed IPO and mounting pressure from creditors. Byju’s has previously undergone multiple rounds of workforce reductions, resulting in the layoff of more than 10,000 full-time and contract positions in the last two years.
The Bengaluru-based startup is reportedly strategising to eliminate redundant positions across its offline and online operations. This restructuring initiative extends to a significant reduction in roles within the marketing department and the removal of numerous high-salaried senior executive positions, as per insiders.
Arjun Mohan, who recently assumed the role of Chief Executive for the company’s India business, has purportedly informed senior executives of his intention to amalgamate various business segments as part of these impending changes, anticipated to be implemented later this week or early next week.
What did the Byju’s statement read?
A statement by the Byju’s read, “We are in the final stages of a business restructuring exercise to simplify operating structures, reduce the cost base and better cash flow management. Byju’s new India CEO, Arjun Mohan, will be completing this process in the next few weeks and will steer a revamped and sustainable operation ahead.”
These job cuts are reportedly focused solely on Byju’s parent company, Think & Learn, and do not affect any of its subsidiary entities. Byju’s, which held a valuation of $22 billion the previous year, has encountered a string of business challenges in recent months. These challenges include the departure of its auditor and board members. Additionally, the company has been engaged in negotiations regarding the repayment of a substantial $1.2 billion loan during this period.
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