Byju’s Announces Major Workforce Reduction: 4,000 Employees Impacted in Restructuring Drive

Byju’s, the edtech giant, is undergoing a significant restructuring that will result in a reduction of its workforce. Approximately 4,000 employees, or 11% of its current 35,000-strong workforce, will be affected by these layoffs. The restructuring aims to simplify the company’s operational structure, cut expenses, and improve its cash flow to ensure long-term sustainability. This process is expected to be completed within the next few weeks

Byju’s has witnessed several senior-level departures in recent months. The layoffs will primarily impact the parent company, Think & Learn, and will not affect its subsidiaries. Arjun Mohan, the newly appointed CEO of Byju’s India business, is overseeing the restructuring with the full knowledge of the firm’s investors.

Over the past year, Byju’s has already laid off 7,000 employees, including about 600 from its group companies, WhiteHat Jr and Toppr, in an effort to achieve cost efficiency. The company is also exploring options to repay a $1.2 billion loan and may need to sell two of its businesses to stabilize its financial situation. However, the anticipated sale is expected to generate only around $800 million.

In June of this year, Byju’s implemented a significant reduction in its workforce, affecting approximately 1,000 employees across various departments, including mentoring, logistics, training, sales, post-sales, and finance. The company now faces the challenge of meeting its loan repayment commitments to lenders while also seeking additional capital through fundraising efforts.