BENGALURU: Two weeks after deciding to halt payments to lenders, edtech firm Byju’s has reportedly cut nearly 1,000 jobs across various departments. The edtech firm has decided to cut jobs with an aim to improve its finances.
This decision comes at a crucial time when Byju’s hasn’t made any further payments including interest on a $1.2 billion Term Loan B (TLB). A couple of employees who have been laid off told this newspaper that many employees have been receiving layoff emails and that they were informed about the retrenchment last week.
An employee at Byju’s in a LinkedIn post said that he worked hard and was always available 24/7 for the company. He said the company has asked him to resign immediately and that he would not complain anything against the edtech firm as it helped him last year when he was searching for a job by offering him one. He further added that the work culture at Byju’s was good and that they would have taken this decision since they might be in trouble.
He is yet to inform his family and he said he doesn’t have the courage to inform them as he is the sole breadwinner in the family. When asked about layoffs, Byju’s declined to comment. 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 been backed by prominent investors such as Chan-Zuckerberg Initiative, Naspers, CPPIB, General Atlantic, Tencent, Sequoia Capital, Lightspeed Ventures, Tiger Global, Owl Ventures & Qatar Investment Authority, among others. The country’s most valued edtech firm recently announced that it will launch an initial public offer (IPO) of its subsidiary, Aakash Education Services Limited (AESL) mid next year.
The upcoming IPO will provide a significant capital infusion to bolster Aakash’s infrastructure, broaden its reach, and extend high-quality test-prep education to a larger number of students across the nation. Since its acquisition, Aakash has clocked a three-fold increase in revenue in the last two years. AESL’s revenue is on track to reach Rs 4,000 crore with an EBITDA of `900 crore in the fiscal year 2023-24, Byju’s said.
Edtech woes
Byju’s in a legal tussle with its lenders over $1.2 billion term loan B (TLB)
Edtech company had filed a complaint in New York Supreme Court to challenge the acceleration of TLB
Edtech company has cut nearly 3,000 jobs in recent times
Currently, it employs over 45,000 people
Byju’s subsidiary Aakash’s revenue is on track to reach Rs 4,000 crore
Its investors include Chan-Zuckerberg Initiative, Naspers, General Atlantic, Tencent