Byju's ongoing financial woes continue as the company terminates over 500 employees amidst financial challenges
Byju's has yet again come under the spotlight as the debt-laden ed-tech firm has terminated over 100-500 employees to address the financial challenges. Further departures are expected as the company has been unable to meet salary obligations for three consecutive months. The sales division of the company is expected to bear the brunt of these developments.
According to a report by moneycontrol, the ed-tech giant has begun laying off its employees through phone calls and is doing so without implementing a performance improvement plan (PIP). The company is also not requiring employees to serve a notice period before their departure.
Over the past two years, Byju's has let go of over 10,000 employees due to financial struggles and legal disputes with investors and other stakeholders. As per the last available data, cited in the report, Byju's India entity had around 14,000 employees on its payroll.
"We are in the final stages of a business restructuring exercise announced in October 2023 to simplify operating structures, reduce the cost base, and better cash flow management," a company spokesperson told moneycontrol.
"We are going through an extraordinary situation in the company because of the ongoing litigation, where every employee and the ecosystem itself is going through tremendous stress given the present circumstances," the spokesperson further added.
This news comes at a time when the company has been facing a string of challenges involving its board members, auditors, investors, employees, and government bodies like the Employees' Provident Fund Organisation, the Board of Control for Cricket in India, and the Enforcement Directorate.