The troubles of Byju’s, a leading startup in the edtech sector, are not ending. Once again the company has decided to layoff about 4000-5000 people. Recently the company has appointed Arjun Mohan as its new CEO and this retrenchment is taking place under his leadership.
The troubles of Byju’s, a leading startup in the edtech sector, are not ending. Once again the company has decided to layoff about 4000-5000 people. Recently news came that the company has appointed Arjun Mohan as its new CEO. It is being told that this new retrenchment is taking place under the leadership of the new CEO. There are reports that the company has restructured the business, due to which many people have lost their jobs.
Startup Byju’s, which is struggling with cash crunch, is rapidly trying to save its business and reduce costs. For this the company has already done layoffs several times. Just a few months ago, in the month of June, the company had laid off about 1000 employees. The layoffs affected employees across Byju’s marketing, sales and business development as well as product and technology teams, including WhiteHat Jr. employees.
The company is facing difficulties
The company has to take this big step because its revenue is falling rapidly. On the other hand, there is a delay in the IPO of the IPO company. Not only this, now pressure has started increasing on the company from investors also, due to which this step has to be taken.
The company spokesperson said in a statement that we are in the final stage of restructuring the business, under which efforts are being made to simplify the operating structure. Besides, this will reduce costs and improve cash flow management. According to the spokesperson, Byju’s new CEO Arjun Mohan will complete this process of business restructuring in the next few weeks.
Recently the salaries of the employees were postponed
Edtech sector giant Byju’s has postponed the salary of the old employees who were laid off for some time. Now the company spokesperson has told Zee Business that amidst ‘difficult business restructuring’ the company will soon pay the full and final dues of the old employees. The company has said that it is sorry for the delay in paying the salaries of the old employees. The company said that it is committed to fulfill all its obligations as soon as possible.
Some time back, information was given by the company to the former employees through an email. It was told that the payment which was to be made on 15th September, would now be made till 17th November. The company had expressed regret for the delay in paying the final salaries of former employees.
The company has a debt of about 1.2 billion dollars
Edtech startup Byju’s is planning to sell its overseas units Epic and Great Learning to repay its entire debt of $1.2 billion. A source gave this information to PTI on Monday. Informed sources said Byju’s has been in touch with its lenders and has proposed to them to repay their entire loan through the sale of its overseas businesses. This loan is worth 1.2 billion dollars i.e. about Rs 9,956 crore.
Byju’s hopes that it can get between $ 800 million and $ 100 million from the sale of children’s education company Epic and skill development platform Great Learning. Apart from this, Indian company Byju is also expected to get some amount from the sale of equity stake. He is in touch with strategic investors for the sale of these properties. There has been no response to an email sent to Byju’s seeking comment.
