Online education giant Byzoos has laid off 1000 employees, PTI reported. Sources said the employees were laid off as part of the restructuring of the company, PTI said.
This new development has taken place after entering into a legal battle with lenders regarding a debt of one billion dollars in America. Although 1000 employees have been laid off, the company is said to still have 50 thousand employees.
Although 1,000 employees have been laid off, the total number of employees in the company is 50,000 and the company is currently recruiting new employees, PTI reported.
The company plans to turn a profit by March 2023. It had announced to lay off 5% of the total workforce i.e. 2500 employees for six months from October 2022. Sources told PTI that the recent layoffs are also part of the restructuring of the company.
Bijus has contacted the company via email to confirm this, but no response has been received, reports said.
10 thousand crore loan, 330 crore rupees interest
Byjus is facing severe financial shortage and is stuck in debt of 10 thousand crore rupees. Interest of 330 crore rupees has to be paid every three months. Byjus, which was hugely popular during the Covid pandemic, has lost popularity after that. Online teaching has also reportedly declined.
Lenders rejected the long-term loan repayment proposal and demanded early repayment, leaving the company in dire straits and facing a legal battle.
Bijus started in Bangalore in 2011 and gained huge popularity. It was once valued at $22 billion. Global investors like General Atlantic, BlackRock and Sequoia Capital have invested in it.
English summary
BYJU’s, the edtech major, has laid off around 1,000 employees as part of its restructuring efforts. The company is also facing a legal battle with US lenders over a USD 1 billion term loan B.
Story first published: Tuesday, June 20, 2023, 9:35 [IST]
