Troubled edtech giant BYJU’S has decided to lay off around 4,000 employees over the next few weeks as part of a restructuring exercise amid a severe cash crunch, sources told Inc42.
The layoffs will be restricted to Think & Learn Private Ltd, the parent of BYJU’S, and doesn’t include its subsidiaries, the sources said.
“The layoff exercise will begin in a couple of weeks but indications of such layoffs have been given to the employees. This is the only way to move forward,” one of the sources said.
The layoff exercise will also impact senior employees and team managers.
The restructuring exercise is being undertaken under the leadership of Arjun Mohan, who was appointed as the CEO of BYJU’S India business last week, they added.
“BYJU’S CEO and cofounder Byju Raveendran has given a free hand to Mohan for the restructuring decision. The company’s investors are also aware of this decision,” the source quoted above said.
A BYJU’S spokesperson confirmed that the edtech company will be undertaking a restructuring exercise but did not disclose the number of employees who will be impacted by it.
“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,” a BYJU’S spokesperson said on Inc42’s queries.
Meanwhile, Inc42 has also learnt that two top executives of BYJU’S Tuition Centre have tendered their resignations as part of this restructuring exercise.
Asheesh Sharma, who was handling academics at BYJU’S Tuition Centre, and Surendra Pandey, the regional director of the hybrid learning arm, resigned on Tuesday (September 26), the sources said.
It must be noted that BYJU’S, including its group companies, has laid off over 7,000 employees so far since last year.
The latest restructuring exercise is part of BYJU’S efforts to cut costs and streamline its business. The startup is currently battling a number of problems, with the biggest one being its $1.2 Bn Term Loan B. The edtech giant is struggling to pay the loan and is said to be looking to sell two of its acquired companies – Great Learning and Epic – for $800 Mn-$1 Bn.
Earlier this year, the startup, last valued at $22 Bn, saw three of its board members – Peak XV Partners’ GV Ravishankar, Prosus’ Russell Dreisenstock and Vivian Wu of Chan Zuckerberg initiative – tender their resignation from its board.
Its statutory auditor Deloitte also resigned citing the delay in publishing the company’s financial statements.
BYJU’S is yet to file its FY22 financial reports with the Ministry of Corporate Affairs.
The company has also come under the lens of the Enforcement Directorate (ED), the Ministry of Corporate Affairs and the Employees’ Provident Fund Organisation (EPFO) for various reasons.
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