Layoffs in 2023: Edtech’s BYJU’S may soon take a decision to cut costs. A report says that this company will lay off 1000 employees to reduce the loss.
The Morning Context claims that BYJU’S sales and marketing team will suffer the most from this decision of the company. It was valued at $22 billion in the last funding round.
This news of BYJU’S is coming at a time when the company has filed a lawsuit against the lenders of its $ 1.2 billion term loan B, which it raised in the US in November 2021. The company has also said that it will not pay any further interest till the matter is resolved.
What steps did the company take
The company said in its statement that it has taken decisive action to challenge the US $ 1.2 billion Term Loan B (TLB) and file a complaint with the New York Supreme Court to disqualify Redwood Capital Management. According to Byju’s, these tactics included threatening to confiscate the company’s assets and demanding early repayment of loans.
The company has already done layoffs
According to media reports, earlier this year the company had laid off around 1,500 employees. Byju’s had fired around 1,500 employees citing cost and operations. It was said in Mint’s report that many departments were affected by this decision of Byju’s.
The CEO had said that there would be no retrenchment
Byju’s founder and CEO Byju Raveendran had assured employees in October that there would be no layoffs beyond the planned 2,500 employees. In May, Blackrock reduced the valuation of edtech major Byju’s by $8.29 billion.
