Edtech giant, Byju’s, plans to lay off 4,000 to 5,000 workers during a business restructuring exercise. The company will cut costs as part of a bigger business restructuring due to a delayed IPO and lender pressure. New CEO, Arjun Mohan, is overseeing the transformation.
A company official said “We are in the final stages of a business restructuring exercise to simplify operating structures, reduce the cost base, and improve cash flow management.”
The spokesperson continued, “Byju’s new India CEO, Arjun Mohan, will complete this process in the coming weeks and will steer a revamped and sustainable operation forward.”
The edtech giant this week promoted Mohan to CEO of its operations in India as it considers selling some of its companies to pay back its outstanding $1.2 billion Term Loan B (TLB) due to “difficult business restructuring”.
Mohan succeeded Mrinal Mohit, founding partner and outgoing head of the India business at Byju’s, who is starting a new path to pursue personal goals.
The top-level restructuring happened after Byju’s announced a proposal to repay its $1.2 billion Term Loan B (TLB) and contemplate selling Epic and Great Learning to raise $800 million to $1 billion.
If granted, the company will repay $300 million in the first three months and $1 billion in the next three. According to reports, the lenders are considering Byju’s proposal.
Conclusion:-
Byju’s would lay off 4,000 to 5,000 workers during a business restructuring exercise. The restructuring is part of a bigger cost-cutting effort due to a delayed IPO and lender pressure. Arjun Mohan, the new CEO, will supervise transformation. Byju’s is in the final stages of a business restructuring exercise to simplify operating structures, reduce costs, and improve cash flow management. The restructuring follows news that Byju’s has developed a plan to pay back its outstanding $1.2 billion Term Loan B (TLB) and is considering selling at least two of its subsidiaries, Epic and Great Learning, to obtain between $800 million and $1 billion.
