Byju's CEO Arjun Mohan To Layoff Over 4,000 Employees, Merge Business Verticals
A large number of employees at Think & Learn, the parent company of Byju's, will be losing their jobs. This includes both permanent and contract workers
According to media reports, Byju's new Chief Executive Officer (CEO) in India, Arjun Mohan, plans to decrease the headcount in the company. The decision is likely to impact around 4,000 to 4,500 employees.
Mohan is currently in his second stint at Byju's. Prior to joining the edtech major, he was with UpGrad India Business. He informed senior company executives that the platform will be merging several business verticals and this is expected to be rolled out later this week or early next week.
A large number of employees at Think & Learn, the parent company of Byju's, will be losing their jobs. This includes both permanent and contract workers. Many senior positions within the company will also be terminated.
Byju's is currently evaluating the impact of recent changes on their workforce in India. It is expected that there will be significant reductions in staff, although the exact number is yet to be determined. Fresh layoffs are likely to impact a significant part of the senior executives. The steps is seen as one more step towards cost-cutting. Employees who are in performance improvement plan would also be included in this drive.
Media reports further speculated that the firm aims to lower operating costs by implementing restructuring measures, coinciding with its focus on repaying a USD 1.2 billion term loan B. As part of this, the company plans to divest international assets such as Epic and Great Learning.
According to media reports, the business in India now primarily focuses on two areas: K-12 education and test preparations. Other sections of the business will be combined into these two main areas. These changes have been planned for a while and now the internal divisions are being merged.
Byju's Tuition Centre, live programmes and home tuition are being merged. This decision is in line with Byju Raveendran's goal of focusing on profitable growth. Last month, Byju's announced the consolidation of its four verticals into two: K-10 and exam preparation. Previously, the company operated across categories including K3 or Early Learn, 4th to 10th class levels, 11th and 12th class levels and offline Byju’s Tuition Centres (BTC).
Asheesh Sharma, responsible for leading the 11th and 12th-grade business at the edtech firm, along with other executives, is leaving the company as part of a restructuring.
Byju's aims to cut costs internally while also resolving the USD 1.2 billion term loan B dispute with creditor Davidson Kempner. It had entered into negotiations with Davidson Kempner Capital to settle the breach of a loan covenant related to its subsidiary, Aakash Institute. The edtech firm had secured a loan facility of Rs 2,000 crore in May.
Byju's is negotiating a sale for Aakash and is set to provide its FY22 financials soon. The company has formed an executive council to appoint a new CEO following the exits of CEO Abhishek Maheshwari and CFO Vipan Joshi.
Around The World