Business

Byju’s Begins Layoffs Across Departments Amid Tension with Lenders

One of the world’s most valued startups Byju’s has been engaging the headlines quite a lot over several things like unpaid loans, and controversies over its finances, among others. Lately, the edtech startup is in the news for keeping up with the trajectory of laying off its employees in an effort to reduce costs. The company’s ongoing tension with the lenders is the reason it needs to cut costs. While implementing its decision to fire 1000 employees, which reportedly the company has had in mind for quite some time, the HRs of Byju’s held a one-on-one discussion in person as well as via phone calls on June 16. As reported by Moneycontrol, the update about terminating employment was communicated to individuals from several departments including mentoring, logistics, training, sales, post-sales, and finance.

According to reports, Byju’s plans to let go of the majority of its senior employees who have worked for the company for more than two years. Speaking of,  Byju’s is cutting costs more broadly as a result of mounting pressure from its lenders.

The report further added that following the discussions, employees were asked to resign voluntarily on the company’s HR portal. Moreover, in addition to deactivating their email IDs, the company asked them to submit their employee IDs.

While these layoffs are believed to be a cost-cutting stunt, some reports claim that it was aimed at achieving profitability. Reportedly, the affected employees are to be given their salaries for the month of June and July.

The decision of Byjus’s to terminate employees came soon after the company skipped a $40 million quarterly interest payment earlier this week on a $1.2-billion term loan B (TLB). The edtech startup then sued the investment management company Redwood to contest the acceleration of a $1.2 billion term loan B facility and to have the lender disqualified for using “predatory tactics.”

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.

Moreover, Byju’s said in a statement that it issued a notice to Redwood entities, according to which the investment company will no longer be eligible to serve as a lender with critical rights under the term loan norms.

Also Read: Lenders to Consider Forensic Audit of Go First’s Accounts

Malika Sahni

Recent Posts

Renowned Folk Singer Sharda Sinha Passes Away At 72; PM Modi Expresses Condolences

PM Modi expressed sorrow over Sinha’s death. "The passing of Sharda Sinha ji is deeply…

8 hours ago

US Election: India Confident Of Strong US Relations And Quad Continuity, Says Jaishankar

Jaishankar noted that the US-India relationship has flourished under both Democratic and Republican leadership, including…

9 hours ago

Sanskriti Diwas Marks 98th Birth Anniversary Of Kashiraj Dr Vibhuti Narayan Singh

Program coordinator Chakravarti Vijay Navad announced that 11 prominent individuals received the Kashiraj Dr. Vibhuti…

10 hours ago

Mallikarjun Kharge Slams ‘Batenge Toh Katenge’ Slogan During Jharkhand Campaign

Kharge emphasized that the BJP leaders promote divisive rhetoric as part of their agenda. He…

11 hours ago

Police Arrest Two In Fake Marriage Certificate Racket In Name Of Arya Samaj

DCP Nagar Abhishek Bharti revealed that five couples, including Shivani and Shrikant Yadav, recently filed…

12 hours ago

India And Nigeria Strengthen Counter-Terrorism Cooperation In Second Strategic Dialogue

Doval and Ribadu held detailed talks on challenges linked to terrorism and radicalization, including those…

12 hours ago