Indian edtech giant Byju’s said on Wednesday it will eliminate 5% of its workforce, or about 2,500 roles, across multiple departments and is cutting its marketing budgets as it looks to improve its finances and achieve profitability by end of the current financial year.
This the second significant layoff the startup, valued at $22 billion, is undertaking in recent months. In June, it cut hundreds of jobs. The move comes amid the ongoing global market downturn, which has forced many startups, including Byju’s, to postpone their plans to file for an initial public offering.
The startup said it is retargeting its marketing budget toward more efficient growth. “Since significant brand awareness has been created in India over the past few years, there is a scope to optimise marketing budgets locally and prioritise spending to increase brand awareness in overseas markets,” it said in a statement.
The Indian startup has moved to clear its debts and other balances in recent months. It recently cleared all its dues to Blackstone by paying $234 million it owed the global investment giant for the $1 billion acquisition of Aakash, TechCrunch reported earlier. The startup, which posted a net loss of $577.4 million, is aiming to become profitable by the end of the current financial year.