New Delhi: Edtech major Byju’s is going to lay off 4,000-5,000 employees in a “business restructuring exercise” in the coming weeks, the media reported on Tuesday. According to TechCrunch, Byju will go through the restructuring exercise “to pare down costs amid a broad restructuring of its business following a delayed IPO and pressure from lenders”.
The restructuring exercise is being undertaken under the leadership of new CEO Arjun Mohan, according to the report.“We are in the final stages of a business restructuring exercise to simplify operating structures, reduce the cost base and better cash flow management,” a company spokesperson said in a statement. (Also Read: In PICS: India’s 8 Most Expensive Weddings Of All Time)
“Byju’s new India CEO, Arjun Mohan, will be completing this process in the next few weeks and will steer a revamped and sustainable operation ahead,” the spokesperson added.
The edtech major last week elevated Mohan as the CEO of its India operations, as it mulls selling some of its subsidiaries to repay its outstanding $1.2 billion Term Loan B (TLB) amid “difficult business restructuring”.
Mohan succeeded Mrinal Mohit, founding partner and the outgoing head of India business at Byju’s, who is embarking on a new journey to pursue personal aspirations.
The rejig at the top level came as Byju is mulling to sell at least two of its subsidiaries, Epic and Great Learning, to raise between $800 million and $1 billion, amid reports that the company has formulated a proposal to repay its outstanding $1.2 billion Term Loan B (TLB).
Reports also surfaced that the company is offering to repay $300 million of the debt within three months if the proposal is accepted while repaying the remaining amount in the next three months. The lenders are reportedly reviewing Byju’s proposal.