Byju’s to Cut Staff as Cash Flow Tightens
Byju’s, the biggest ed-tech firm in India, is reportedly planning to terminate the employment of 1000 individuals, following a previous layoff of 5000 employees just six months ago. The Morning Context, as cited by the Economic Times, revealed that Byju’s has 280 tuition centers nationwide, and its marketing managers have been instructed to release two individuals each from sales and marketing. Additionally, approximately 150 marketing managers are anticipated to be let go, as the company aims to reduce expenses and streamline its operations.
The news comes after the ed-tech startup sued hedge fund company Redwood over its $1.2 billion term loan ,and refused to pay $40 million in interest that came due on Monday. The company also announced that it will not make any further payments until the case is resolved.
Byju’s holds the previous record for mass layoffs, as it laid off nearly 5,000 people last year. The report states: “The move will hurt Byju’s sales and marketing team the most. Marketing directors are on third-party payrolls at companies such as Channelplay and Randstad, to name a few.”
Many senior executives and deputy executives have already left the world’s most valuable ed-tech startup, based in Bengaluru, which was valued at nearly $22 billion in its last funding round. The report also shows that the laid-off employees will be paid two months’ salary as severance pay.
