NEW DELHI: Throughout all departments, the edtech behemoth Byju's has let go almost 1,000 workers as part of its reorganisation process. This happened at a time when the business was engaged in a legal dispute with US lenders over term loan B, a USD 1 billion loan.
According to sources Byju's has let go of about 1,000 workers. However, due to the hiring of new workers, the company's total headcount still hovers around 50,000. The latest layoff is a result of the business's efforts to reduce costs.
Beginning in October 2022, the company let off about 5% of its 2,500 employees as it disclosed its intention to turn a profit by March 2023. Byju's founder and CEO Byju Raveendran promised staff members in October that no additional layoffs would be made after the initial 2,500 employees were let go.
Employees were let go via phone calls and in-person meetings on June 16, according to speculation. Members of the platform, brand, marketing, business, product, and tech departments were reportedly affected by the layoffs.
According to reports, Byju's is one of India's biggest startups. Byju's was established in 2011 and has investors like General Atlantic, BlackRock, and Sequoia Capital. It was previously valued at $22 billion.
Blackrock reportedly reduced Byju's valuation to $8.2 billion in March of this year, which is 60% less than its highest value. There was no formal statement from Byju's on file with the agencies. According to Reuters, a representative for Byju's declined to comment when the agency approached the company about potential layoffs.
However, BYJU'S has recently been struggling with legal and financial issues. Over 60% below its peak price, Blackrock reduced the company's worth to $8.2 billion last month. Before that, in March, the investment management firm had reduced the startup's valuation to $11 billion. BYJU'S is also engaged in litigation with creditors seeking early repayment of a $1.2 billion loan in US courts.
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