Shortly after taking over the role of Byju's India business, its new CEO has announced massive restructuring and cost cutting at the crisis hit education giant.
Crisis-hit Byju's plans to lay off around 5,000 employees to decrease costs amid a restructuring of its business.?Arjun Mohan, who took over as the CEO of the company's India business, has briefed senior executives that he will be merging several business verticals as part of the changes, which are expected to be rolled out later this week or early next week, a Reuters report mentioned, citing ET.
The job cuts are being implemented only at Byju's parent, Think & Learn, and are not linked to any of its subsidiaries, with a significant number of roles that would be made redundant constituting senior positions at the firm.
"They (Byju’s) want to bring more students to offline centres and that’s the main way the new management has identified to run operations that can sustain over a period of time," ET reported citing a person aware of the discussions.?
Byju's currently has a total of about 35,000 employees, as per a?Business Standard report.?Early this year, Byju's laid off about 1,000 employees. Sources in the company said the move was part of the "optimisation" strategy that the Edtech firm had announced last year, which included sacking 2,500 workers.
Byju's, which was valued at $22 billion last year, has experienced a series of business setbacks, including its auditor and board members quitting. In the last few months, it has also been negotiating the repayment of a $1.2 billion loan. In July this year,?Byju?Raveendran reportedly broke down in tears after ED raided the company's offices.
Once the world's most valuable Edtech firm, Byju's was not only?raided by ED, but the Edtech giant also failed to file its financial accounts on time. Several US-based investors accused Byju’s of hiding half a billion dollars, prompting lawsuits.??
Arjun Mohan, who was recently elevated as CEO of Byju's India business, has replaced outgoing CEO Mrinal Mohit, according to the sources.?Mohan, who was once the company’s chief business officer, had returned to spend the last three months working with founder and group CEO Byju Raveendran. While away from Byju’s, Mohan worked at Ronnie Screwvala-led Edtech firm UpGrad.
Group CEO Raveendran recently said that Arjun Mohan’s return is a testament to his belief in the company’s mission and the unparalleled opportunities that lie ahead. “His expertise will undoubtedly help our turnaround efforts and strengthen our position in the global EdTech landscape,” said Raveendran, as per the report.
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