Ed-tech major BYJU’S in another round of layoffs, has let go of 1,000 full-time employees, according to people in the know.
Employees across the platform, brand, marketing, business, product and tech have been affected in the current round. Previously, it had reportedly sacked 1,000 employees, majorly in the roles of contractual workers and on-ground staff.
The company, as it faces issues with its lenders, is said to be looking to reduce costs, as business growth momentum sees a significant drop on the back of falling demand scenario post pandemic.
In a bid to ‘rationalise costs’, it had laid off 2,500 employees across departments, in October 2022. At the time it had merged four acquired companies, including Toppr, Meritnation, TutorVista, Scholar, and HashLearn.
High stake battle
The edtech decacorn is engaged in a high stake battle with its lenders. BYJU’S had sued lenders led by Redwood at the New York Supreme Court to challenge the acceleration of the $1.2-billion term loan B (TLB). BYJU’S had to make a quarterly interest payment of about $40 million to meet the June 5 deadline on the $1.2-billion loan, which it eventually missed.
BYJU’S had asked for the disqualification of Redwood, accusing the latter of purchasing a significant portion of the loan while primarily trading in distressed debt, contrary to the terms of the TLB.
Subsequently, a group of lenders had termed BYJU’S case as “meritless” and an attempt to avoid complying with regulations. The group of ad hoc term lenders collectively owned more than 85 per cent of BYJU’S $1.2-billion term loan.
However, the ed-tech company had initiated one-on-one meetings with its lenders, albeit it received a pushback on this proposal as well as a group of lenders refused to engage in one-on-one meeting and sought for a group discussion instead.