Byju’s, the education-technology giant, is reportedly planning to lay off approximately 1,000 more employees, almost six months after it terminated 5,000 employees. The report states that marketing managers have been instructed to dismiss two individuals from the sales and marketing teams at each of the company’s 280 tuition centers nationwide. Additionally, around 150 marketing managers themselves may face job cuts.
Byju’s recently made a decision to halt further payments on a $1.2 billion loan following a disagreement with its lenders. This dispute has intensified tensions and raised concerns about the company’s future. Byju’s did not fulfill its obligation to pay $40 million in interest, which was due on Monday. The matter has led the company to file a complaint regarding the loan with the New York Supreme Court, as stated in a statement released by Byju’s on 6 June.
Some lenders and their advisers are considering various options, such as negotiating with Byju’s for a loan amendment, initiating legal action, or attempting to seize collateral. However, Byju’s has denied rumors that its decision to withhold interest payments indicates financial difficulties.
Byju’s had been engaged in discussions with creditors to restructure the loan, as the financial impact of the pandemic on the online tutoring industry affected its finances. Unfortunately, negotiations collapsed when creditors insisted on an accelerated repayment schedule, leading to the current situation.
In April, Byju’s encountered a legal issue involving the Enforcement Directorate (ED). The ED conducted searches at the premises of CEO Byju Raveendran, alleging violations of foreign funding laws.