Byju’s, the edtech firm, is reportedly gearing up for another round of staff layoffs following the appointment of a new CEO, impacting approximately 5,000 employees.
Byju’s, once hailed as one of the country’s most successful startups, encountered financial challenges in FY21, reporting a substantial loss of 4,564 crore. In response, the company initiated a workforce reduction in October 2022, resulting in the termination of 2,500 employees. Subsequently, multiple rounds of layoffs followed, affecting hundreds of additional staff members.
Now, according to a report by Moneycontrol, Byju’s is preparing for another round of layoffs, with an estimated 4,000 to 5,000 employees expected to be affected. The new CEO, Arjun Mohan, is overseeing a restructuring of the organization, which is likely to lead to these job cuts.
Byju’s is set to lay off 5,000 employees, according to the Moneycontrol report, as part of the company’s restructuring efforts under its new CEO. These layoffs are expected to impact various verticals within the organization, with employees of Think and Learn Pvt Ltd facing potential job cuts. However, Aakash employees will reportedly not be included in this round of layoffs.
The report also indicates that the new CEO has communicated these decisions to senior leaders within the company. Several departments, including Sales and Marketing, are likely to be affected by the impending layoffs.
In response to these developments, a spokesperson for Byju’s told Moneycontrol that the company is in the final stages of restructuring, aiming to simplify operational structures, reduce costs, and enhance cash flow management. The new CEO, Arjun Mohan, is committed to completing the restructuring process in the coming weeks and steering the company toward a revamped and sustainable operation.
Notably, following the announcement of job cuts in October 2022, the former CEO of Byju’s expressed regret and offered support to affected employees in an email communication. He acknowledged the difficulty of the decision, citing the need to prevent role duplication and address external macroeconomic challenges. The email conveyed a sense of solidarity with departing employees, emphasizing that they were not just numbers but valued contributors to the organization. The former CEO pledged to support their transition during this challenging time.