Arjun Mohan, Byju’s India CEO, resigned seven months after he was appointed to the role. The company will now be led by founder Byju Raveendran amid mounting struggles to repay its outstanding debt, employee salaries and vendor fees.
“The changes follow a comprehensive seven-month operational review and cost optimization exercise led by Byju’s outgoing India CEO Arjun Mohan,” the company said in a statement on Monday. Mohan will now transition to an external advisory role, it added.
The company said it will restructure the business into three segments after Mohan’s departure – the learning app, the learning center business, and the test preparation vertical, which is seen as the company’s crown jewel.
The company is facing an intense legal battle with its investors over alleged financial mismanagement and compliance and governance issues. Once valued at $22 billion, Byju’s has seen its valuation fall sharply following a series of allegations by investors and investigations by regulators. It is now valued at around $250 million, or 99% less than its peak.
Byju has also delayed salary payments since the beginning of the year and laid off more than 500 employees earlier this month. It is embroiled in multiple legal battles with its investors and is unable to access the $200 million it raised in a rights issue due to a court order.
About 1,500 employees have left the company in recent months amid the escalating crisis and doubts about its ability to stay in business. The company has also freed up its offices nationwide to reduce costs, keeping only its headquarters at IBC Knowledge Park in Bengaluru, according to media reports.
This is a developing story. Check back soon for more updates.
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Published: 15 Apr 2024, 10:31 IST