Byju’s India Undergoing Major Restructuring, Could Result In Significant Layoffs
Restructuring and Layoffs at Byju’s India
Byju’s India, under the leadership of its newly appointed CEO, Arjun Mohan, is planning a major restructuring of the company. This could potentially result in significant layoffs, with the local unit’s size possibly being slashed by a third. The aim is to streamline operations and improve cost control. Mohan has informed senior executives of plans to merge various business verticals, potentially leading to the loss of around 4,000-4,500 jobs, a mix of permanent and contractual positions. This is expected to primarily affect Byju’s parent company, Think & Learn, with senior-level positions being particularly impacted.
The final number of job losses may fluctuate as teams assess the effects of these changes. It is important to note that these reductions will not impact Byju’s subsidiaries like Aakash or its overseas operations. The company has been gradually reducing its workforce for over a year, from around 52,000 in 2021 to currently over 35,000.
Byju’s Future Focus and Restructuring Goals
Byju’s future focus will be on profitable endeavors within its two primary verticals, with the aim of attracting more students to offline centres, seen as key to sustainable long-term operations. The restructuring is now approaching its final stages, with the goal of simplifying operating structures, reducing costs, and improving cash flow management.
The company, valued at $22 billion last year, has faced several business challenges, including the departure of its auditor and board members. It has also been in discussions regarding the repayment of a $1.2 billion loan. Despite these challenges, Byju’s intends to steer a revamped and sustainable operation ahead. The company, however, did not provide specific responses to queries about the restructuring.
Challenges Faced by Byju’s
Despite being a significant player in the edtech sector, Byju’s has faced a series of setbacks in the past few months. This includes its auditor and board members stepping down, and the company having to negotiate the repayment of a $1.2 billion loan. It is reported that the company is cash strapped, and the layoffs are expected to ease its cash flow situation by the end of October.
Another challenge has been the need to reduce overlaps between its online and offline staff. This restructuring is expected to impact the firm’s regional offices as well, as the firm will now have offices only at four-five locations, down from 19 regional offices.
Despite the challenges, Byju’s is focused on navigating this difficult phase and coming out stronger. The company is committed to steering a revamped and sustainable operation under the leadership of its new CEO. Despite the turbulence, Byju’s remains a major player in the edtech sector. Its experience serves as a reminder of the challenges faced in this industry and the need for constant adaptation and evolution.
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