Mumbai, June 9: New reports claim that Edtech giant Byju's is planning a new round of job cuts to streamline operations and cut costs. The new job cuts will affect the contractual staff across the on-gound sales team.

Earlier this year, the company laid off nearly 1,500 employees across several verticals. It cited cost optimization and outsourcing of operations as the main reason behind these cuts. Scale AI CEO Alexandr Wang Says US Risks Falling Behind China in Race for Powerful AI Warfare Tools.

However, in October last year, Byju’s founder and CEO Raveendran assured employees that no further layoffs will take place (beyond the planned 2,500 staff).

Additionally, Byju's has filed a lawsuit against the lenders of its $1.2 billion term loan B. The company will not make any further interest payments until the case is resolved.

“Byju’s has taken the decisive action to file a complaint in the New York Supreme Court to challenge acceleration of the US$ 1.2 billion Term Loan B (TLB) and to disqualify Redwood Capital Management, who contrary to the terms of TLB, purchased a significant portion of the loan while primarily trading in distressed debt," the company said in a statement. NASA's Parker Solar Probe Flies Close to Sun To Find Source of Solar Wind.

Byju's valuation is currently $8.29 billion. US-based asset manager BlackRock reduced the valuation of the edtech giant by 62 per cent. In 2022, the company's peak valuation reached $22 billion.

(The above story first appeared on LatestLY on Jun 09, 2023 09:49 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).