BYJU'S to cut 4000-5000 jobs to get out of trouble
Byju's, India's largest edtech startup, is reportedly planning to lay off up to 4,000 employees in its latest round of layoffs. This decision has been attributed to sources familiar with the development. Notably, this move coincides with the recent appointment of Arjun Mohan as the company's new Chief Executive Officer (CEO) for its Indian operations.
It appears that Byju's is making significant changes to its workforce by including senior executives in the layoffs. This strategic move is aimed at reducing the company's high costs associated with senior management-related expenses. By trimming its senior management, Byju's may be seeking to streamline its operations and cut down on operational costs.
According to an individual familiar with the situation, the layoffs at Byju's are primarily the result of a combination of factors. This includes employees failing to meet performance-improvement plans as well as the decision to let go of contract staff. It suggests that the layoffs are not solely based on performance issues but also include a reduction in contract staff.
It seems that Arjun Mohan, the new CEO of Byju's, held a meeting with some senior staff members on Tuesday and informed them that both they and their respective teams would be affected by the layoffs. However, as of now, no one has been officially terminated. The process of implementing the layoffs is expected to commence later this week or early next week. The rationale behind these measures appears to be addressing a cash flow issue, with the expectation that these actions will help resolve the matter by the end of October.
Byju's is implementing measures to reduce overlaps within its workforce. This includes streamlining the coordination between its online and offline staff and staff in regional sales offices. The company plans to consolidate its regional offices, reducing the total from 19 to just four or five locations.
Arjun Mohan was appointed as the new Chief for Byju's operations in India on September 20. Mohan, who previously worked at upGrad and had experience with Byju's, is now responsible for managing over 75% of the company's revenues. Although he officially joined the company a month ago, he has been collaborating with Byju's in an informal capacity for some time.
A spokesperson from Byju's provided a statement indicating their intent to finalize a business restructuring initiative. This restructuring aims to simplify their operating structures, reduce operational costs, and improve cash flow management. The newly appointed India CEO, Arjun Mohan, will oversee this process in the coming weeks and guide the company towards a revamped and sustainable operation.
As of the end of August, the parent company, Think & Learn Pvt. Ltd, had over 19,000 employees, including contract staff. However, it is expected that this workforce will be reduced to approximately 15,000 employees following the layoffs, as part of their efforts to streamline and optimize their operations.
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