Byju’s plans to let go of additional staff to streamline operations further and reduce costs, tells sources who wished to remain anonymous. Most affected employees are part of the on-ground sales teams and were hired through third-party contractors.
According to a report from The Morning Context, Byju’s is planning to cut around 1,000 staff members. This move comes as no surprise, as the company’s growth has stopped, and it is now focusing on building a hybrid model with Aakash. An anonymous source stated that a hybrid strategy may be one of the last options for online education technology companies, as selling online courses has become increasingly difficult.
Since last year, Byju’s has been implementing cost-cutting measures to optimise operations as the digital K-12 education sector struggles to attract new customers.
Around 1,000 employees, including those in senior strategy, technology, and product roles, were let go earlier this year. Last October Byju’s terminated over 2,500 employees, which was one of the largest layoffs done by an Indian startup.
This week, Byju’s sued Redwood, an American investment management firm and its related entities, for accelerating the repayment of its term loan. Byju’s has decided to not make any further payments to the TLB lenders until the matter is resolved in court.
Byju has skipped quarterly interest payments of approximately $40 million on a $1.2 billion term loan B (TLB), currently under litigation. In addition, the company is fighting a lawsuit in a Delaware court against US-based investment management firm Redwood which has proposed to take over its US entity, Byju‘s Alpha, after a default earlier this year. Byju’s latest court action follows unsuccessful negotiations with lenders to agree on new loan terms.
According to a filing reviewed by Economic Times, BlackRock – a minority shareholder with less than 1% stake in Byju’s – lowered the edtech’s valuation to $8.29 billion last month, and this was the second time the firm marked down Byju’s valuation in recent months.
According to a report from The Morning Context, Byju’s is planning to cut around 1,000 staff members. This move comes as no surprise, as the company’s growth has stopped, and it is now focusing on building a hybrid model with Aakash. An anonymous source stated that a hybrid strategy may be one of the last options for online education technology companies, as selling online courses has become increasingly difficult.
Since last year, Byju’s has been implementing cost-cutting measures to optimise operations as the digital K-12 education sector struggles to attract new customers.
Around 1,000 employees, including those in senior strategy, technology, and product roles, were let go earlier this year. Last October Byju’s terminated over 2,500 employees, which was one of the largest layoffs done by an Indian startup.
This week, Byju’s sued Redwood, an American investment management firm and its related entities, for accelerating the repayment of its term loan. Byju’s has decided to not make any further payments to the TLB lenders until the matter is resolved in court.
Byju has skipped quarterly interest payments of approximately $40 million on a $1.2 billion term loan B (TLB), currently under litigation. In addition, the company is fighting a lawsuit in a Delaware court against US-based investment management firm Redwood which has proposed to take over its US entity, Byju‘s Alpha, after a default earlier this year. Byju’s latest court action follows unsuccessful negotiations with lenders to agree on new loan terms.
According to a filing reviewed by Economic Times, BlackRock – a minority shareholder with less than 1% stake in Byju’s – lowered the edtech’s valuation to $8.29 billion last month, and this was the second time the firm marked down Byju’s valuation in recent months.
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