Beleaguered edtech firm Byju's is planning to cut close to 4,000 of its employees' jobs in a huge restructuring exercise. The move comes after the appointment of new CEO Arjun Mohan.
The layoffs will cover both permanent and contractual workers and are aimed at controlling high fixed costs on the company. The job cuts will also include senior executives, in order to reduce the company’s high cost of senior management-related costs, according to a report by M
A source close to the matter has informed that the move is a mix of firing of employees failing to improve their performance and the company ridding itself of contractual employees.
Byjus is cash strapped and the firings will ease its cash flow situation by the end of October. The company is reducing overlaps between its online and offline staff as well.
Apart from this, the heat will also be felt in the firm's regional offices as the firm will now have offices only at four-five locations, from a measure of 19 regional offices.
Arjun Mohan, Byju's new CEO, is a former upGrad executive who had previously worked at Byju’s. He will be responsible for 75 percent of Byju's income. Mohan was named as the CEO on 20 September and was brought in around a month ago but had been working in an informal capacity for sometime.
Byju's Parent company Think & Learn Pvt. Ltd had around 19,000 employees in August. This number will be reduced to somewhere around 15,000 workers, however, the layoffs will only occur in Byju's and not in any of Think & Learn's other subsidiaries.