Byju’s to restructure business, more layoffs expected: Arjun Mohan, the recently appointed Chief Executive of Byju's India, has wasted no time in taking charge of the edtech giant. Mohan's strategy includes streamlining operations, and insiders suggest he plans to reduce the local unit's size by one-third to enhance cost control, according to the Economic Times reported on Tuesday (26th Sep 2023).
Arjun Mohan, who returned to Byju's after heading Upgrad's India business, has reportedly informed senior executives that he intends to merge various business verticals, with these changes expected to roll out later this week or early next. This move is expected to result in the job cuts of approximately 5,500 positions, including both permanent and contractual staff, the ET report said.
The report claims that the job cuts will be confined to Think & Learn, the parent company of Byju's, and will not impact its subsidiaries. However, a substantial number of positions slated for elimination are at the senior level.
Looking ahead, the primary focus will be on driving attention toward profitable endeavors within the two primary verticals. According to an informed source, Byju's aims to attract more students to offline centers, viewing this as the key approach for achieving sustainable operations over the long term.
A company spokesperson confirmed to the financial daily, "We are in the final stages of a business restructuring exercise to simplify operating structures, reduce the cost base, and improve cash flow management.
Byju's new India CEO, Arjun Mohan, will be completing this process in the next few weeks and will steer a revamped and sustainable operation ahead." However, specific queries regarding the restructuring were not answered.
The firm, valued at $22 billion last year, has faced several business challenges, including the departure of its auditor and board members. Additionally, it has been in discussions regarding the repayment of a $1.2 billion loan in recent months.
© Indiatimes
