Byju's Begins Laying Off 1,000 Employees Amid Loan Standoff
Byju's is also in the middle of a legal battle with lenders, and has skipped a $40 million payment to lenders.
Edtech Byju's, which is in the middle of a standoff with lenders over a $1.2-billion loan repayment, has started the process of firing around 1,000 permanent employees in a fresh round of layoffs.
The company is cutting roles across departments such as logistics, training, sales, and finance, according to a source familiar with the development who spoke on the condition of anonymity.
The plan to lay off 1,000 employees was first reported by The Morning Context about two weeks ago.
Byju's is also in the middle of a legal battle with lenders and has skipped a $40 million payment to them. Instead, it filed a complaint in the New York Supreme Court to "challenge the acceleration" of the $1.2 billion term loan and to disqualify Redwood—an agent of the lenders—who, it says, has indulged in a series of "predatory tactics".
It had said it would not be making any further payments on the term loan as legal proceedings are ongoing in both Delaware and New York. The lenders' group has since called Byju's lawsuit "meritless" and labelled it as an effort to avoid making contractually required payments.
In October last year, the company announced 2,500 job cuts in an attempt to meet its target of achieving profitability. It also said that it would reduce its marketing budget domestically and prioritise spending "to increase brand awareness in overseas markets".
