New Delhi, September 26 (Reuters) – Byju’s, the prominent Indian education company, has unveiled plans to reduce its workforce by approximately 5,500 positions as part of a strategic restructuring aimed at cutting costs, according to a report by the Economic Times published on Tuesday.

Arjun Mohan, the newly appointed CEO of Byju’s India business, has communicated his intent to merge several business verticals as part of these forthcoming changes, which are slated to roll out later this week or early next week, as per the report.

The staff reductions are expected to occur solely within Byju’s parent company, Think & Learn (THIK.NS), and are unrelated to its subsidiary entities, clarified the report. Notably, a considerable portion of the affected roles includes senior positions within the organization.

A source familiar with the discussions revealed, “They (Byju’s) want to bring more students to offline centers, and that’s the main way the new management has identified to run operations that can sustain over a period of time,” as cited by ET.

Byju’s, valued at $22 billion last year, has encountered a series of business challenges, including the departure of its auditor and board members. Additionally, in recent months, the company has been engaged in negotiations for the repayment of a $1.2 billion loan.