New Delhi: The troubled edtech giant, BYJU’S, is set to implement layoffs affecting approximately 4,000 employees, including senior employees and team managers, in the coming weeks as part of a restructuring effort due to financial difficulties. The layoffs will be restricted to Think & Learn Private Ltd, the parent company of BYJU’S, and will not affect its subsidiary companies.
The decision to restructure is being spearheaded by Arjun Mohan, who was recently appointed as the CEO of BYJU’S India business, with the approval of the company’s investors. While BYJU’S spokesperson confirmed the restructuring plans, they did not disclose the exact number of employees to be affected. The primary objective of this restructuring initiative is to simplify operating structures, reduce costs, and enhance cash flow management.
In addition to the layoffs, two high-ranking executives from BYJU’S Tuition Centre, Asheesh Sharma and Surendra Pandey, have tendered their resignations as part of the restructuring process. Asheesh Sharma managed academics at BYJU’S Tuition Centre, while Surendra Pandey served as the regional director of the hybrid learning arm.
BYJU’S, along with its affiliated companies, has already laid off more than 7,000 employees since last year. The latest restructuring initiative is driven by the need to control expenses and streamline operations, primarily due to challenges related to a $1.2 billion Term Loan B. To address this financial burden, BYJU’S is reportedly considering selling two of its acquired companies, Great Learning and Epic, for an estimated $800 million to $1 billion.
BYJU’S has faced various other challenges, including the resignation of three board members, namely Peak XV Partners’ GV Ravishankar, Prosus’ Russell Dreisenstock and Vivian Wu of the Chan Zuckerberg initiative.
The company has also seen delays in financial statement publication, and scrutiny from regulatory authorities such as the Enforcement Directorate, the Ministry of Corporate Affairs, and the Employees’ Provident Fund Organisation (EPFO). As of now, the company has not yet submitted its financial reports for FY22 to the Ministry of Corporate Affairs.
Discussion about this post