Layoffs 2023: Byju's undergoes major restructuring under new CEO, potential job cuts of 5,000

Byju's layoffs 2023: Byju's, the renowned edtech giant, is undergoing a significant restructuring process under its newly appointed CEO, Arjun Mohan, which could result in the reduction of 4,000 to 5,000 jobs, Moneycontrol reported through sources.

This restructuring primarily affects employees based in India at Think and Learn Pvt Ltd, the entity responsible for operating Byju's, with Aakash remaining unaffected, according to inside sources.

Arjun Mohan, a seasoned Byju's executive who recently assumed the role of CEO, has relayed these decisions to the company's senior leadership. The impending job cuts are expected to touch various departments, including sales, marketing, and areas with significant redundancy. Mohan succeeds Mrinal Mohit, another long-serving Byju's executive.

Liquidity concerns at Byju's

This move comes at a crucial juncture for Byju's, as the edtech unicorn grapples with a challenging liquidity situation. The company has already downsized its office spaces, explored subsidiary sales, and initiated efforts to secure external funding. Byju's has undergone several rounds of layoffs in the past.

Byju's Statement

A company spokesperson stated, "We are in the final stages of a business restructuring exercise to simplify operating structures, reduce the cost base, and better cash flow management. 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."

Cash crunch and growing debt

This urgency to conserve cash arises from Byju's need to address an impending liquidity crunch concerning lender commitments.

Earlier this month, Byju's proposed to repay its disputed $1.2 billion term loan B to lenders within the next six months, with an initial payment of $300 million in the next three months.

The company is exploring subsidiary restructuring and the sale of key assets, including Great Learning and US-based Epic, to fund this repayment plan.

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