BYJU’S will soon fire as many as 1,000 employees to cut costs.
The affected teams
The move will go ahead despite it hurting the sales and marketing teams the most which was valued at $22 billion in its last funding round.
The development comes close on the heels of the company skipping a quarterly interest payment of about $40 million earlier this week on a $1.2-billion term loan B (TLB).
Filing suit in NYSC
BYJU’S filed a suit against investment management firm Redwood to challenge the acceleration of a $1.2 billion term loan B facility and disqualify the lender for its “predatory tactics.”
It filed the suit in the New York Supreme Court saying Redwood purchased a significant portion of the loan while primarily trading in distressed debt, which was contrary to the conditions of the term loan facility.
Predatory tactics
It also issued a notice to Redwood entities disqualifying the investment firm as a lender with critical rights under the term loan norms once it takes effect, the company said in a statement.
“We had to take these measures following a series of predatory tactics by the lenders, led by Redwood,” the startup said.
In October 2022, BYJU’s said it will axe 2,500 employees by March 2023.
