Byju’s Initiates Layoffs, Parting Ways with 100 Employees
- ByStartupStory | August 19, 2023
Edtech giant Byju’s has garnered attention by emerging as a leader in layoffs within the Indian startup ecosystem. Over the course of three phases since October 2022, the company has terminated the employment of over 4,000 individuals. In a recent move to streamline its operations, Byju’s, based in Bengaluru, has chosen to part ways with an additional 100 employees as a result of a routine performance evaluation.
While some sources characterize this as yet another round of layoffs within the company’s ongoing challenges, Byju’s emphasizes that these departures are due to performance-related reasons and should not be construed as a cost-cutting measure. According to the company’s statement, “There are no fresh layoffs in the post-sale division. In fact, during the past two months, as part of our commitment to strengthening this division, Byju’s has welcomed 200 new professionals.”
This development coincides with Byju’s efforts to address its longstanding debt crisis. The company has missed a deadline set by its creditors to revise the terms of a $1.2 billion debt. Despite a July announcement from the steering committee of ad hoc term loan lenders that they would collaborate with the edtech leader to finalize the term loan amendment by August 3, Byju’s, under the leadership of Byju Raveendran, failed to meet the established criteria.
The broader startup landscape in India has also witnessed a significant number of workforce reductions. According to data compiled by Fintrackr, over 60 Indian startups have collectively let go of more than 15,000 employees during the first half of 2023. This figure aligns with trends from the previous year, when over 20,000 employees were affected by layoffs amid a funding downturn.
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