BYJU’s Announces Layoff 3,500 Employees
In the 21st century, it is getting quite tough to get a good job. We are all witnessing the issue of unemployment. Despite having degrees and vast experience, most youth are struggling to get a well-paid job. Those people who are getting it are not satisfied with their salary and want to have more, but in fear of getting unemployed, they are working out of compulsion. The situation is getting worse as there are several companies that are laying off their employees. Although there are some big companies that are doubling their workforce and hiring more and more employees,
Sadly, this time we are sharing a piece of news that is on the negative side. According to the reports, an Indian educational technology major has decided to lay off employees in their first round. The company identified as BYJU’s has planned to fire some employees in a fresh round. This decision is made as a part of their restructuring exercise, and it will occur in the next few weeks. It is noted that this layoff is not happening for the first time. Even at the start of this year, BYJU’s sacked around 1,000 employees. In addition to this, last year, this educational technology company sacked 2,500 employees.
This step came into existence to cut down on the cost base. The report states that the company is currently struggling with several issues, including funding issues, battles with lenders, and even a devaluation. Well, with this decision, many employees will become unemployed. According to the sources, this layoff will impact more than 4,000 employees. Sadly, this news has been officially confirmed by the spokesperson of the company, who declined to disclose the actual number of workers who will face this sack. The spokesperson states that BYJU’s is in the final step of a business restructuring exercise.
As per BYJU’s spokesperson, “Our company is in the final stage of a business restructuring exercise to reduce operating structures, cut down the cost base, and improve the management of cash flow. Arjun Mohan, BYJU’s New India CEO, will be finishing off this process in the upcoming weeks. Before Arjun Mohan, Mrinal Mohit was appointed to the position of CEO. Mr. Mohan was previously recruited for the position of Chief Business Officer (CBO) at BYJU’s. But later on, he stepped down from this position and started working with UpGrad, a Ronnie Screwvala-led edtech company.
After the return of Mohan, the company hopes to be back on track, and surely the decision to lay off the employees will be made under his leadership. Raveendran earlier stated after the return of Mohan, “The expertise and knowledge of Mohan will surely help the company with turnaround efforts, and it will strengthen the position of the company in the global EdTech landscape.” Well, before the exit of Mohan, many high-level employees resigned from this company. This could be the reason that the company is struggling to maintain its position in the market.
Not only BYJU’s but also the group companies Toppr and WhiteHat Jr. sacked around 600 employees. Over the past few months, the company has been struggling with financial issues. The debt of BYJU’s is constantly increasing, and it has been going through a budget scarcity. The report states that to repay TLB, the firm decided to auction two of its main assets, Great Learning and Epic, to get $800 million to $1 billion in cash. In October 2022, the edtech company was valued at around $22 billion. Let’s see which employees will lose their jobs and how the company will raise its valuation. Stay tuned for more such news, and don’t forget to read our further articles and news.