Byju’s to layoff 1000 employees amidst reports of a cash crunch
India's largest ed-tech company Byju's is set to fire 1000 people just six months after its mass layoff that included 5000 people being handed the pink slip. According to a report by The Morning Context (via Economic Times), Byju's currently has 280 tuition centers across the country and the marketing managers have been asked to let go of two people each from both sales and marketing. Moreover, around 150 marketing managers are also expected to be let go, the report said. The move to cut expenses by firing people is expected to streamline operations.
This news comes after the ed-tech startup sued investment management firm Redwood for its $1.2 billion term loan and refused to pay the $40 million in interest that was due on Monday. The company also said that it would not be making any further payments until the resolution of the case.
Byju's has a previous record when it comes to mass layoffs as it laid off almost 5000 people last year. The report states, “The move will hurt the sales and marketing teams the most at Byju's. Marketing executives are on third-party payrolls of companies such as Channelplay and Randstad, to name a few.”
Many senior managers and assistant general managers have already left the world's most valuable ed-tech startup which is based in Bengaluru and was valued at almost $22 billion during its last round of funding. The report further reveals that two months' salary will be given as severance pay to the laid-off employees.
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