JOIN USByju's denies report on laying off 12,000 staff, says job cuts not more than 2,500
Edtech major Byju's is planing to lay off about 12,000 employees, nearly a quater of its workforce, according to a report by the Morning Context quoting sources.
Valued at around $22 billion in September, the online learning platform had in May reported a loss of Rs 4,564 crore ($554.77 million) for fiscal 2021 due to higher promotion and employee expenses.
The startup, which employs 50,000 people, had said that it expects layoffs at its product, content, media and technology teams as well as revision of sales and marketing approaches to result in "sizable savings with no impact on growth".
Byju’s meanwhile denied the number of jobs it was cutting and said that job cuts were "not more than 2,500".
"They will also be offered a path to return to Byju’s in the next 12 months in new roles that are more relevant and productive for both the company and the employees," the company said.
Byju's had raised $250 million (about Rs 2,000 crore) from its existing investors, including Qatar Investment Authority in its last round of funding.
The company is also taking an unsecured loan of Rs 300 crore from its subsidiary Aakash Educational Services, which it acquired for more than $950 million, to bolster its "principal business activities", reported IANS.
The company told the wire agency in a statement that Rs 300 crore loan from Aakash is, in effect, an advance against the marketing activities and campaigns that Byju's has been running for Aakash.
(With inputs from agencies)