1,000 More Employees Will Be Cut by Byju’s Due to Tension With Lenders
The second wave of layoffs at the Indian ed-tech business Byju’s has begun, affecting workers from multiple divisions. The internet business is experiencing conflict with the lenders of a $1.2 billion term loan at the time of the layoffs.
Moneycontrol said that the HR department at Byju’s had face-to-face meetings and private conversations with workers to inform them of their job reductions. Some employees received information regarding the layoffs, which will start on June 14.
Employees have the opportunity to voluntarily quit after the conversations on the official HR webpage. According to the article, the email accounts were shut down and they were requested to provide their official identification cards.
More than 1,000 people will be laid off, largely senior staff members who have worked for the organisation for more than two years. All impacted workers will get two months’ pay for June and July from the edtech giant.
By September or October, or about 45 days after July, a complete and final settlement will be reached. After this, however, no more severance will be provided.
Byju’s failed to turn a profit by the conclusion of the fiscal year 2022–2023 despite putting cost-cutting measures in place and terminating more than 2,500 workers.
Byju’s announced 1,000 job losses earlier this month, mostly affecting contract employees and on-site personnel hired from outside sources.
The edtech company said in October of this year that it will try to reduce expenses by 2,500 staff.
The corporation now has 40,000 or more employees.
Byju’s has just missed a loan payment of $40 million in interest, which coincides with the layoffs. It has a case against one of the lenders and is in talks with them.
