India's edtech giant Byju's to lay off 1,000 more employees: Report

India's educational technology giant Byju's is expected to be laying off more employees, The Morning Context reported this on Wednesday citing an internal communication seen by it. The company hasn't denied or confirmed the report so far.

The report mentioned that the ed-tech company intends to lay off around 1,000 employees and the move will hurt sales and marketing teams the most.

The report also mentioned that the marketing executives are on third-party payrolls of the companies such as Channelplay, Randstad, and more.

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Earlier this year in January, the company fired around 5,000 people across verticals in a mass layoff. The company has also reportedly sacked many top executives, including senior vice presidents who were apparently taking big salaries (reported to be around Rs10 million).

Byju's sued by agent linked to $1.2 billion loan

A couple of days back, the company said that it 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".

Byju's said 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. The company filed the suit in the New York Supreme Court.

Byju's 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.

Bloomberg reported in May that Byju's Alpha was sued by an agent for lenders owed $1.2 billion after months of negotiations between creditors and the education technology firm.

The report added that Glas Trust Company and investor Timothy R. Pohl filed the action against Byju's Alpha, Tangible Play, Inc., and Riju Ravindran. Think and Learn Private, which is the ed-tech giant founded by Byju Raveendran, is suing the two firms. The regulatory filing noted that Ravindran is a director of Think and Learn.

Court filings have been redacted with details on why the complaint was brought and what does Glas Trust and Pohl want. The report mentioned that one filing suggests that the case may be in connection to a fight over the election of directors, although it does not include specific charges.

Before an anti-money laundering investigation began in April, Byju's was scrambling to please creditors on the refinancing of the loan.

(With inputs from agencies)

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