Byju’s, a prominent edtech company, has decided to forgo campus placements this year as part of its extensive cost-cutting measures, which have already resulted in more than 13,000 job layoffs over the past year. Engineering colleges, including prestigious institutions like the Indian Institutes of Technology (IITs), were in discussions with Byju’s regarding campus recruitments, but the company has not confirmed any hiring plans due to its ongoing restructuring efforts.
A senior executive familiar with the situation explained, “Byju’s is unlikely to hire from any campus this year, and it will take about 6-7 months for the restructuring in the company to get completed. Until then, cost optimization plans won’t allow any hiring.”
Byju’s has been implementing cost-cutting measures for the past 12 months, and this marks the fourth round of layoffs it has announced since October of the previous year. The total number of employees affected by these retrenchments has exceeded 13,000.
Another company insider stated that Byju’s is unlikely to hire employees at various levels at present. “The new management and advisers have set in motion a cost rationalization plan that will take Byju’s close to profitability and reduce the burn. Key non-core areas have been identified, and over the next six months, the plan will be executed,” the source explained. Any hiring, if it occurs, is expected to take place next year.
Last year, Byju’s had also skipped hiring from some of the top IITs, although there were some junior-level recruitments. This year, placement teams in younger IITs were in contact with the company but have not received confirmation regarding recruitments.
Byju’s primarily hires for technical and product roles from major engineering colleges in India. The company has been facing challenges on multiple fronts, including alleged corporate governance issues, slower growth, liquidity problems, and legal disputes with lenders over Term Loan B. In response, Byju’s is devising a restructuring plan for its businesses and is exploring the sale of its Epic and Great Learning units to repay its lenders.
The appointment of Arjun Mohan as the new CEO, a former Chief Business Officer at Byju’s and India Chief Executive of UpGrad, is part of the company’s revival plan. Mohan has indicated that the company plans to cut around 4,500-5,000 jobs across various functions, including sales and marketing.
Byju’s spokesperson commented on the restructuring, stating, “We are in the final stages of a business restructuring exercise to simplify operating structures, reduce the cost base, and better cash flow management. BYJU’S new India CEO, Arjun Mohan, will be completing this process in the next few weeks and will steer a revamped and sustainable operation ahead.”