American asset manager BlackRock has reportedly reduced the valuation of edtech giant Byju’s by almost 50 percent to $11.5 billion. Last year, in June 2022, the value of the company was estimated at $ 22 billion.
Byju’s, the country’s largest edtech firm, has once again faced the threat of layoff among its employees. The company’s India CEO Arjun Mohan (Byju’s CEO Arjun Mohan) has prepared a cost cutting plan while intensifying the restructuring exercise. According to the report, under this, about 4,000 employees working in the company can be thrown out. Only last week, Arjun Mohan was named the CEO of the company in India and now he has informed the company management about his plan.
Plan to fire 11% employees
According to the news of Business Standard, Byju’s company, which is facing funding crisis, is planning cost cutting to simplify the operational structure. Due to this exercise of restructuring the business, 11 percent of the total workforce of the company may be shown the way out in the coming few weeks. These are approximately 4,000 employees. Quoting sources in the report, it has been said that the total number of employees in this Bengaluru-based edtech company is around 35,000. Earlier in June 2023, the company had laid off 1000 people.
Employees of which departments will be affected?
However, when information was taken from Byju’s spokesperson in this regard, he refused to disclose the total number of employees who will be affected under the company’s restructuring plan. But he has said that the work of business restructuring of the company is in the final stages. According to the report, the new retrenchment may affect the Indian employees of Think and Learn Private Limited, the entity that operates Byju’s, as well as the employees of Aakash.
Company’s value halved in one year!
It is noteworthy that American investors had reduced their holding in Byju’s last year. American asset manager BlackRock has reportedly reduced the valuation of edtech giant Byju’s by almost 50 percent to $11.5 billion. Last year, in June 2022, the value of the company was estimated at $ 22 billion. If seen from this perspective, it has halved in just one year. However, no comment has been issued by the company in this regard.
Byju’s founder has this confidence
If we talk about Arjun Mohan, who has been made the new CEO of BYJU’s for the Indian business, before this he was serving the responsibility of Chief Business Officer in the company. Now the responsibility of restructuring the company also rests on his shoulders. Byju’s Founder Byju Raveendran had recently said that Arjun Mohan’s entry is a testament to his belief in the company’s mission and the unique opportunities ahead. His expertise will certainly aid our transformation efforts and strengthen our position in the global edtech landscape.