According to a report released on Wednesday, edtech giant BYJU’S will soon let go of up to 1,000 employees in order to reduce costs. The Morning Context reported that BYJU’S, which was valued at $22 billion in its most recent funding round, will be most negatively impacted by the move on its sales and marketing teams. Reportedly, the marketing executives work for firms like Channelplay and Randstad that employ third parties.
Byju’s action would occur shortly after Byju’s Raveendran-led company skipped a $40 million quarterly interest payment on a $1.2 billion term loan B (TLB) earlier this week. In order to contest the acceleration of a $1.2 billion term loan B facility and disqualify the lender for its “predatory tactics,” BYJU’S filed a lawsuit against investment management company Redwood, the company announced on Tuesday.
According to BYJU”S, who filed the lawsuit in the New York Supreme Court, Redwood violated the terms of the term loan facility when it bought a sizable portion of the loan while primarily trading in distressed debt.
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According to a statement, the investment firm will no longer be eligible to serve as a lender with critical rights under the term loan norms, according to a notice that BYJU’S also sent to Redwood entities.
“We had to take these measures following a series of predatory tactics by the lenders, led by Redwood,” the startup stated. BYJU’s announced in October last year that it would lay off 2,500 workers by March 2023.
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