India’s Byju’s to cut another 500-1,000 jobs -source

By Rama Venkat

BENGALURU (Reuters) – Popular Indian edu-tech startup Byju’s will lay off between 500 and 1,000 employees in another round of job cuts to cut costs, a source with knowledge of the matter told Reuters on Monday.

The company, which employs around 50,000 employees, is one of India’s largest startups, once valued at $22 billion. It was founded in 2011 and has attracted global investors such as General Atlantic, BlackRock and Sequoia Capital over the past decade.

A spokesperson for the company declined to comment on possible layoffs.

The company has already cut more than 3,000 jobs in the past year, and the latest round is in line with cost-cutting measures aimed at achieving profitability, the source said, without giving a timeframe for when the company expects to be in the black.

Byju’s valuation was marked down to $8.2 billion by Blackrock last month, over 60% below its peak valuation. This was its second markdown after BlackRock marked it down to $11 billion in March, according to a filing by the U.S. fund seen by Reuters.

The company is also fighting a battle in U.S. courts with creditors who want an early repayment of a $1.2 billion loan.

India’s Enforcement Directorate raided three premises linked to the online learning platform in April over alleged foreign exchange law violations, which Byju’s has denied.

(Reporting by Rama Venkat in Bengaluru, writing by Shilpa Jamkhandikar, editing by Susan Fenton)