Byju's Begins Layoffs To Impact 1000 More Employees The fresh round of firing comes at a time when the company has entered into a legal battle with lenders in the US for a $1.2 billion term loan B
By Teena Jose
Opinions expressed by BIZ Experiences contributors are their own.
You're reading BIZ Experiences India, an international franchise of BIZ Experiences Media.
Indian edtech unicorn Byju's has started another round of layoffs which will impact nearly 1000 employees across various departments. The fresh round of firing comes at a time when the company has entered into a legal battle with lenders in the US for a $1.2 billion term loan B.
According to a report by Moneycontrol, the HR team at Byju's held individual discussions with employees and in-person meetings to communicate about their job cuts. It is also said that the edtech firm decided to cut jobs with an aim to improve its finances.
After the discussions, employees were given the option to resign voluntarily on the official HR portal. The email accounts were deactivated and they asked to submit their official identity cards, as per the report.
BYJU's had announced cutting about 5% of 2,500 employees over six months starting October 2022 as it unveiled the company's plan to become profitable by March 2023. In the past year alone, the company has cut close to 3,000 jobs. The company last year announced that it was aiming to achieve profitability by March 2023, and will cut 2,500 jobs. It is yet to file its financial results for FY22. Apart from 2,500 job cuts, last year it also laid off 500 jobs across Toppr and WhiteHat Jr.
"BYJU's has laid off close to 1,000 employees. However, the final headcount of the company remains around 50,000 because of the addition of new employees," the PTI reported, citing the sources aware of the development.
Reportedly, the edtech major decides to pay two months' salary for June and July to all affected employees, adding that a full and final settlement will be made by September-October, almost 45 days after July.
The edtech major had also announced recently that it will launch an initial public offer (IPO) of its subsidiary, Aakash Education Services Limited (AESL) mid next year. According to the company, AESL's revenue is on track to reach INR 4,000 crore with an EBITDA of `900 crore in the fiscal year 2023-24.
