Byjus to restructure the business community, more layoffs are expected: Arjun Mohan, the recently appointed Chief Executive of Byju’s India, has wasted no time in taking charge of the edtech giant. Mohan’s strategy involves streamlining operations, and insiders suggest he plans to reduce the size of the local unit by a third to improve cost control, an ET report said.
Mohan, who returned to Byju’s after heading Upgrad’s India operations, has reportedly informed senior executives that he plans to merge several verticals. These changes are expected to be implemented later this week or early next week. This step is expected to result in the job losses of about 5,500 positions, including both permanent and contractual staff, the ET report said.
The report claims that the job cuts will be limited to Think & Learn, the parent company of Byju’s, and will not affect its subsidiaries. However, a substantial number of positions about to be eliminated are at the senior level.
Looking ahead, the primary focus will be on drawing attention to profitable activities within the two key verticals. According to a well-informed source, Byju’s aims to attract more students to offline centers and sees this as the key approach to achieving long-term sustainable operations.
A company spokesperson confirmed to the financial daily: “We are in the final stages of a corporate restructuring to simplify corporate structures, reduce cost base and improve cash flow management. Byju’s new Indian CEO, Arjun Mohan, will complete this process .in the coming weeks and will drive a renewed and sustainable operation forward.” However, specific questions about the restructuring were not answered.
The company, which was valued at $22 billion last year, has faced several business challenges, including the departure of its accountant and board members. In addition, discussions have been held in recent months about the repayment of a $1.2 billion loan.
Mohan, who returned to Byju’s after heading Upgrad’s India operations, has reportedly informed senior executives that he plans to merge several verticals. These changes are expected to be implemented later this week or early next week. This step is expected to result in the job losses of about 5,500 positions, including both permanent and contractual staff, the ET report said.
The report claims that the job cuts will be limited to Think & Learn, the parent company of Byju’s, and will not affect its subsidiaries. However, a substantial number of positions about to be eliminated are at the senior level.
Looking ahead, the primary focus will be on drawing attention to profitable activities within the two key verticals. According to a well-informed source, Byju’s aims to attract more students to offline centers and sees this as the key approach to achieving long-term sustainable operations.
A company spokesperson confirmed to the financial daily: “We are in the final stages of a corporate restructuring to simplify corporate structures, reduce cost base and improve cash flow management. Byju’s new Indian CEO, Arjun Mohan, will complete this process .in the coming weeks and will drive a renewed and sustainable operation forward.” However, specific questions about the restructuring were not answered.
The company, which was valued at $22 billion last year, has faced several business challenges, including the departure of its accountant and board members. In addition, discussions have been held in recent months about the repayment of a $1.2 billion loan.
ADVERTISEMENT
