Byju's Begins Layoffs To Impact 1000 More Employees The fresh round of firing comes at a time when the company has entered into a legal battle with lenders in the US for a $1.2 billion term loan B

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Twitter

Indian edtech unicorn Byju's has started another round of layoffs which will impact nearly 1000 employees across various departments. The fresh round of firing comes at a time when the company has entered into a legal battle with lenders in the US for a $1.2 billion term loan B.

According to a report by Moneycontrol, the HR team at Byju's held individual discussions with employees and in-person meetings to communicate about their job cuts. It is also said that the edtech firm decided to cut jobs with an aim to improve its finances.

After the discussions, employees were given the option to resign voluntarily on the official HR portal. The email accounts were deactivated and they asked to submit their official identity cards, as per the report.

BYJU's had announced cutting about 5% of 2,500 employees over six months starting October 2022 as it unveiled the company's plan to become profitable by March 2023. 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 laid off close to 1,000 employees. However, the final headcount of the company remains around 50,000 because of the addition of new employees," the PTI reported, citing the sources aware of the development.

Reportedly, the edtech major decides to pay two months' salary for June and July to all affected employees, adding that a full and final settlement will be made by September-October, almost 45 days after July.

The edtech major had also announced recently that it will launch an initial public offer (IPO) of its subsidiary, Aakash Education Services Limited (AESL) mid next year. According to the company, AESL's revenue is on track to reach INR 4,000 crore with an EBITDA of `900 crore in the fiscal year 2023-24.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Franchise

How This Franchise Grew 70% in 3 Years and Became the Top Choice in Tech

Wireless Zone, #1 in the tech category of the Franchise 500, is redefining wireless retail with cutting-edge technology and franchisee support.

Business News

'I Hate Bureaucracy': Leaked Internal Amazon Document Reveals How the Tech Giant Is Cutting Down on Middle Management

Amazon could soon let go of thousands of managers, resulting in savings of up to $3.6 billion.

Business News

'Gen Z Is Obsessed': Chili's Sales Have Skyrocketed Thanks to the Triple Dipper and Turbo Chefs

On an earnings call this week, one analyst said the company's turnaround was "the best one of all time" in the restaurant industry.

Leadership

From Barista to CEO: A Conversation With Smashburger's Leader on Her Inspiring Journey, How She's Transforming the Brand and Her Vision for the Future

Denise Nelsen, CEO of Smashburger, reflects on her journey from Starbucks barista to the leader of one of the most popular brands in the fast-casual dining industry, reveals the exciting changes being implemented at the company and offers advice for aspiring executives.