Byju’s initiates layoffs, to affect up to 1,000 staff – Times of India

NEW DELHI: Troubled edtech startup Byju’s, which is currently engaged in a tussle with its term loan lenders, has initiated a fresh round of layoffs, which will impact about 500-1,000 full time employees across departments, sources said. Byju’s declined to comment. A source , however, said the firm’s attempt to rein in expenses and moves towards profitability necessitated the job cuts.
The startup, which has of late seen a series of valuation markdowns by its investors like BlackRock, has been striving to check costs, amid a tepid funding environment. The company had in October last year laid off as many as 2,500 employees. It is understood that the firm had recently also eliminated a few contractual positions, although the numbers couldn’t be verified.
The current layoffs will affect employees across marketing, sales, product and other teams. The development comes close on the heels of the tension between Byju’s and its lenders getting intensified. Earlier this month, the startup moved New York Supreme Court, challenging acceleration of the $1.2 billion term loan B, besides seeking to disqualify lender Redwood, which the firm claimed engaged in predatory tactics. The lenders hit back, terming the lawsuit as meritless and reportedly dismissed requests of one-on-one discussions put forth by the startup.
Valued at $22 billion, Byju’s is backed by a series of high profile investors, including Tiger Global and General Atlantic. The company’s market credibility has sort of taken a beating with the recent turn of events and experts believe that it will be difficult for the company to attract big ticket equity-only deals. The firm which delayed the release of its FY21 results significantly in late April came under the scanner of the enforcement directorate, which had searched its premises under provisions of the Foreign Exchange Management Act (FEMA).