Byju’s, a renowned Indian edu-tech startup, is set to reduce its workforce by 500 to 1,000 employees in an effort to streamline costs, according to a reliable source from Reuters on Monday.
With an employee count of approximately 50,000, Byju’s is among India’s largest startups, previously valued at a staggering $22 billion (around Rs. 1,80,250 crore). Since its establishment in 2011, the company has successfully attracted investments from global giants like General Atlantic, BlackRock, and Sequoia Capital.
Though a company spokesperson refrained from commenting on potential layoffs, it is worth noting that Byju’s has already downsized its workforce by over 3,000 employees within the past year. This latest round of layoffs aligns with the implementation of cost-cutting measures aimed at achieving profitability, as reported by our source. However, no specific timeline for the company’s anticipated return to profitability was provided.
Last month, BlackRock decreased Byju’s valuation to $8.2 billion (approximately Rs. 67,200 crore), representing a significant decline of over 60% from its peak valuation. Interestingly, this markdown marked the second instance, with BlackRock previously reducing the valuation to $11 billion (nearly Rs. 90,120 crore) in March, according to a Reuters filing.
Furthermore, the company currently faces a legal battle in US courts with creditors who are insisting on early loan repayment amounting to $1.2 billion (about Rs. 9,800 crore).
In April, India’s Enforcement Directorate conducted raids on three premises linked to Byju’s, alleging violations of foreign exchange laws. Byju’s, however, has firmly denied these allegations.
© Thomson Reuters 2023
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Deepak Sen is a tech enthusiast who covers the latest technological innovations, from AI to consumer gadgets. His articles provide readers with a glimpse into the ever-evolving world of technology.