Edtech startup BYJU’S has laid off 500-1,000 employees on Friday (June 16) across verticals, at least four sources confirmed to CNBC-TV18 on the condition of anonymity.
The employees were fired via in-person meetings and phone calls, as per the sources. The layoffs were across platform teams, brand teams, marketing teams, business teams, product and tech teams.
"Employees, especially in the content team, were asked to voluntarily resign on the official HR portal," said one employee on condition of anonymity.
Another source added that almost 50-60 percent of the sales team has been put on PIP (performance improvement plan) after the quarterly assessment.
Sources have also mentioned that senior managers have also been affected.
Meanwhile, BYJU’S has declined to comment.
This comes after BYJU'S filed a suit in the New York Supreme Court challenging the acceleration of the $ 1.2 billion term loan B (TLB). A group of ad hoc lenders called it a “meritless suit.” The lenders collectively own more than 85 percent of the $1.2-billion loan BYJU’S raised in November 2021.
BYJU'S had reached out to the New York Supreme Court on June 6 and accused the lenders of indulging in “predatory tactics.”
In what is possibly the first action of its kind by an Indian company, BYJU’s has also issued a notice to one of its creditors, Redwood, disqualifying it as a lender.
“It is important to note that BYJU'S had so far demonstrated remarkable restraint by refraining from utilising the disqualification clause, instead striving for months to achieve an amicable resolution with the hawkish trader-lenders,” the edtech company has said.
As per an earlier Bloomberg report, BYJU’S creditors have pulled out of negotiations with the company to recast a $1.2-billion loan. The talks were called off after the creditors moved to a Delaware court, accusing the firm of hiding $500 million of funds raised.
Since October 2022, the edtech giant has laid off more than 2,500 employees. The company said it had set itself a target to achieve profitability by the end of FY23 (2022-23, the previous fiscal year).
BYJU’S has done a number of cost-cutting initiatives, particularly on the employee front. The edtech has nearly 40,000 employees.
