Edtech start-up Byju’s is reportedly planning to initiate another round of layoffs in an effort to reduce costs.
This fresh cost-cutting drive is expected to impact many employees, adding to the significant number affected by previous layoffs.
The latest wave is expected to affect contractual staff working on on-ground sales teams.
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These employees are mainly sourced through third-party staffing agencies such as Randstad and Channelplay.
The decision to hire or release contractual workers is based on seasonal fluctuations and the demand for the company’s services.
It is estimated that approximately 1,000 people could be affected by this round of cuts.
Before this, Byju’s had implemented several workforce reductions to streamline operations and mitigate costs amidst a challenging economic environment.
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The company’s decision to save expenses comes when it has also encountered financial difficulties, including the recent omission of a quarterly interest payment of around $40 million.
This payment was associated with a $1.2 billion term loan, which is currently a subject of litigation.
The Economic Times quoted a source: “It is no surprise that BYJU’s is looking to cut costs now, especially when growth has completely stalled, and the focus for them is on building a hybrid play with (test-prep subsidiary) Aakash.
“It seems like a hybrid strategy is one of the last straws left for online edtech as it gets harder to sell online courses.”
