BYJU's to fire around 4,000 employees in major restructuring move
What's the story
Edtech giant BYJU'S is reportedly planning a significant restructuring exercise, including a fresh round of layoffs impacting up to 4,000 jobs, under its new India CEO, Arjun Mohan.
As per Livemint, the move aims to reduce senior management expenses and simplify operating structures for better cash flow management.
A BYJU'S spokesperson confirmed the company is in the final stages of the restructuring process.
Details
Edtech giant faces challenges post pandemic
BYJU'S, formerly India's most valuable start-up, has faced valuation cuts, funding issues, layoffs, high-profile resignations, and an ongoing legal battle with lenders.
The pandemic-driven demand for online education in India has waned since 2021, putting pressure on the edtech firm to cut costs and optimize operations.
Arjun Mohan's appointment as India CEO has initiated a massive restructuring effort to streamline operations and improve cash flow management.
What Next?
Job cuts impact multiple departments
The latest round of job cuts at BYJU'S will reportedly affect senior executives, employees who failed performance-improvement plans, and contract staff.
Multiple functions, including sales, marketing, and areas with significant overlap, will be impacted.
The restructuring aims to reduce the high costs associated with senior management and also simplify the operating structures for better cash flow management.
Some senior staff have been informed of the impending changes, and the process is expected to begin this week or early next week.
Insights
WhiteHat Jr is being rebranded
Separately, Moneycontrol has reported that BYJU'S is rebranding its subsidiary WhiteHat Jr as Byju's Future School. It will have an expanded offline presence.
It is also integrating WhiteHat's assets into other business verticals including its holding entity Think & Learn Pvt. Ltd. This will aid in lowering costs to tide over an immediate financial crunch.
To note, BYJU's acquired Whitehat for $300 million in August 2020 and has infused over $100 million into it since the acquisition.