India’s tech giant Byju’s said on Wednesday it was eliminating 5% of its workforce, or about 2,500 roles, across multiple divisions to improve finances and reach profitability by year-end. current finances, it said.
This is the second significant layoff step the startup, valued at $22 billion, has taken in recent months. In June, it cut hundreds of jobs. The move comes amid a global market downturn, which has forced many startups including Byju to postpone their plans to register for an initial public offering.
“As a mature organization that values its responsibilities to investors and stakeholders, we aim to ensure sustainable growth coupled with strong revenue growth. These measures will help us achieve profitability within the defined timeframe in March 2023,” said Mrinal Mohit, managing director of Byju’s business in India, in a statement.
The Indian startup has turned to paying off debts and other balances in recent months. The company recently cleared all fees to Blackstone by paying the $234 million it owes the global investment giant for its $1 billion acquisition of Aakash, TechCrunch previously reported. The startup, which posted a net loss of $577.4 million, is aiming to be profitable by the end of the current financial year.
It generated total revenue of $1.258 billion (unaudited) in the financial year ending March of this year. From April to July, the startup posted revenue of $570 million. Byju has Prosus Ventures, Chan Zuckerberg Initiative, Sequoia Capital India, Silver Lake, Owl Ventures, UBS and Blackrock among its backers and has raised nearly $6 billion to date.
(More to follow…)