BYJU'S Announces New Round of Layoffs as Part of Cost Reduction Measures

BYJU'S, a prominent Indian edtech company, is set to undergo a significant round of layoffs in the coming weeks as part of a restructuring effort, according to sources familiar with the matter. This move comes as the edtech firm grapples with a substantial funding shortage, contends with lenders, and faces a devaluation of its worth.

Insiders suggest that the layoffs will impact approximately 4,000 employees, which accounts for more than 11 percent of its workforce, comprising 35,000 individuals. Although a company spokesperson confirmed these developments, they chose not to disclose the precise number of affected employees. The spokesperson emphasized that BYJU'S is nearing the final stages of a comprehensive business restructuring initiative.

"We are in the final stages of a business restructuring exercise to simplify operating structures, reduce the cost base, and enhance cash flow management. BJYU'S new India CEO, Arjun Mohan, will be completing this process in the next few weeks and will steer a revamped and sustainable operation ahead," stated a spokesperson for BYJU'S.

Arjun Mohan assumed the role of CEO for India operations several weeks ago, succeeding Mrinal Mohit. Mohan, formerly the company's Chief Business Officer (CBO), temporarily left BYJU'S to work for UpGrad, an edtech company led by Ronnie Screwvala.

Regarding Mohan's return, BYJU'S founder Byju Raveendran remarked, "His expertise will undoubtedly aid our turnaround efforts and reinforce our position in the global EdTech landscape."

The edtech giant has witnessed several senior-level departures. Mohit, the outgoing CEO of BYJU'S India business, departed to pursue personal aspirations, as noted by the company upon his exit. Furthermore, four senior executives had previously resigned, including Prathyusha Agarwal, the Chief Business Officer of the edtech, Himanshu Bajaj, the business head of tuition centers, Mukut Deepak, the business head for Class 4 to 10, and Cherian Thomas, the Senior Vice President of the edtech's international business.