WhiteHat Jr to be rebranded as BYJU'S Future School
BYJU’S has also shared an updated social media policy, forbidding employees from engaging with the media or sharing information on social media.
is reportedly rebranding its coding unit, , as part of efforts to control expenses and address a liquidity challenge within the edtech firm.
By integrating WhiteHat Jr's assets into various business verticals, including its parent company Think & Learn Pvt Ltd, BYJU’S plans to rebrand WhiteHat Jr as “BYJU’S Future School”, featuring an expanded offline footprint, Moneycontrol reported.
BYJU’S acquired WhiteHat Jr for $300 million in 2020. It has emerged as one of its most financially draining subsidiaries.
In the current fiscal, BYJU’S plans to include an impairment cost for WhiteHat Jr. as it proceeds with the subsidiary’s merger, signifying a lasting reduction in the asset’s value, according to the report.
BYJU’S declined to comment on the WhiteHat Jr. development.
Earlier, in February, BYJU'S had denied a media report that it was considering a plan to shut WhiteHat Jr. At TechSparks 2022 a few months prior, Byju Raveendran, Founder and CEO of BYJU’S, said the company is still figuring out the go-to-market strategy for WhiteHat Jr.
In the past year, BYJU’S has made substantial workforce changes at WhiteHat Jr, laying off most employees and transferring the remaining to Think & Learn Pvt Ltd's payrolls, who now manage WhiteHat Jr operations.
Social media policy
Separately, BYJU’S has shared an updated social media policy, forbidding employees from engaging with the media.
The social media policy strictly prohibits any employee from direct communication with any media outlet or sharing company-related information, media, or communication through various platforms like social media, blogs, forums, etc. Violations may lead to disciplinary action and legal consequences, as per the company.
A BYJU’S spokesperson, in a statement shared with YourStory, confirmed that the social media policy has been communicated to all employees internally.
“As you are aware, BYJU'S is working with industry experts to review its business process. As part of this exercise, we are reviewing various policies to reflect industry best practices. We have updated our existing social media policy and communicated the same internally to our employees. This policy is no different and encourages responsible usage of social media for communication,” the spokesperson noted.
Restructuring drive
These developments come a day after it was reported that BYJU’S new chief executive officer Arjun Mohan was planning a workforce reduction of over 5,000 permanent and contractual employees in a restructuring effort aimed at cost control. Mohan, who took charge of BYJU’S India business last week, is set to merge various business verticals.
“We are in the final stages of a business restructuring exercise to simplify operating structures, reduce the cost base and better cash flow management. BYJU’S new India CEO, Arjun Mohan, will be completing this process in the next few weeks and will steer a revamped and sustainable operation ahead,” a BYJU’S spokesperson had said while commenting on the restructuring drive.
Meanwhile, the firm is actively addressing the repayment of its $1.2-billion term loan B (TLB) debt and considering the sale of assets like Epic and Great Learning to generate a minimum of $800 million. Additionally, discussions are ongoing to secure equity investments from Middle East-based sovereign funds.
With an equity raise and asset monetisation, BYJU’S could potentially repay the TLB and still have funds remaining, sources had told YourStory.
The Bengaluru-based company is expected to complete its FY22 audit by the end of September.
Edited by Kanishk Singh