Byju’s to cut 4,000-5,000 jobs in business restructuring exercise; rolls out tough media policy for staff

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’s 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.

“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 to sell 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’s 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.

Edtech major Byju’s has rolled out a new social media policy for its employees, prohibiting them from communicating with any media outlet else “face appropriate disciplinary and legal action”, as it gears up for a massive business restructuring exercise.

The company has sent the new social media policy, fearing that some people who didn’t have full information about what is going on within the company would leak it out to the media, harming its reputation. “You are not allowed to speak directly with any media house or provide the company’s information, including pictures, videos and screenshots, among others,” read the new social media policy. “Any violation of this will be taken up by the company seriously and may result in appropriate disciplinary and legal action against you,” according to the policy.