Byju to Cut Over 4,000 Jobs Amid Cash Crunch, 1,000 Laid Off Earlier
BYJU’s, India’s largest education technology company, is planning to lay off more than 4,000 employees. The management has provided this information to sources without specifying the reasons behind it.
New CEO Initiates Major Changes at BYJU’s
According to reports, the new CEO, Arjun Mohan, is making significant changes within the company, leading to another round of substantial layoffs. Previously, the company had laid off 1,000 employees at the beginning of the year. By the end of the previous year, they had already let go of 2,500 employees.
BYJU’s to Extend Layoffs to Senior Executives
Employees in senior positions at BYJU’s will also face layoffs. The inclusion of top executives in the layoffs is expected to reduce management costs. The report suggests that the decision regarding this restructuring has been communicated to the senior officials beforehand. Contract employees who have failed to perform in the performance improvement plans will also be let go, impacting teams beyond sales and marketing.
Business Restructuring Exercise in the Final Quarter
BYJU’s spokesperson stated, “We are in the final quarter of a business restructuring exercise. Through this, we aim to simplify operations restructuring and improve cash flow management. In the coming few weeks, CEO Arjun Mohan will complete this process, and it will have an impact on how many employees are affected, which has not been disclosed.”
Arjun Mohan Appointed as CEO of BYJU’s Indian Operations on September 20
On September 20, Arjun Mohan was appointed as the CEO for BYJU’s Indian operations, taking over from Mrinal Mohit. Mohan previously held the position of Chief Business Officer (CBO) within the company.
BYJU’s Battles Cash Crunch
The company is currently facing a cash crunch. To alleviate this, BYJU’s has sold two of its major assets, Aakash and Great Learning. Alongside this, the company has been under regulatory scrutiny for the past few months. In July, the company’s auditor, Deloitte Haskins & Sells, resigned from their position and stated that they were not helping prepare the company’s financial results.
