Byju’s Cuts 500 Jobs

Byju’s, the edtech company, has commenced layoffs via phone calls and is releasing employees without implementing a performance improvement plan (PIP). The company is also refraining from requiring employees to complete the notice period.

Employees of Byju’s, an edtech company facing a financial crisis, are very scared. The situation has become such that they are afraid to even pick up the phone calls from the company. According to media reports, Byju’s parent company Think and Learn Financial is doing layoffs. It has started firing its employees through phone calls. 

100 To 500 Employees are targeted

Reports say that the employees who are being laid off have neither been given a notice nor have they been included in the Performance Improvement Plan (PIP). HR is firing them over phone calls without giving them clarification. Reports have quoted sources as saying that 100 to 500 employees may lose their jobs.

Salary not being paid on time

Byju’s has sacked a large number of employees in the last two years. Currently, the company has around 15,000 employees and all of them are in panic at this time. Apart from this, they are also facing problems regarding salary. Once again, the issue of delay in salary of Byju’s employees has come to the fore. This is the second consecutive month when the salaries of the employees have been stopped.

The company cited the order

Byju’s says that at present there is a ban on the use of the money raised through the rights issue, due to which there is a problem in releasing the salary. In fact, in its order dated February 27, the National Company Law Tribunal (NCLT) had directed Byju’s that it will have to keep the money received from the rights issue in an escrow account. This means that the company cannot withdraw this money until the entire matter is resolved. Four investors of Byju’s have filed a case of oppression and mismanagement against the company in NCLT. Along with this, they have demanded that Byju Raveendran, Founder, Byju’s has been declared ineligible to run the company.

The same argument was given earlier as well

The company has emailed its employees citing the NCLT order. In an email sent to the employees on April 1, the company wrote, “We are very sorry to inform you that once again there will be a delay in getting your salary. We have faith in the judicial system of the country. We are waiting for the decision to come in our favour so that we can use the money raised through the rights issue. We are also arranging funds through other means so that you can be given a salary by April 8.” Last month as well, Ravindran had given the same argument for the delay in salary.

All offices are locked

Byju’s had recently asked all its employees to work from home, as the company has vacated its offices across the country due to financial constraints. Only the Bangalore headquarters is open. Byju’s has around 15,000 employees and all of them have been facing problems regarding salary for some time now. Byju Ravindran is trying to convince the angry investors, but he has not had any success. Angry investors say that there has been no change in the way the company management works, information, financial transparency and governance controls. Mainly Peak XV Partners, General Atlantic, Chan-Zuckerberg Initiative and Prosus are angry with Byju’s functioning. The petition filed by these investors is to be heard in NCLT on April 4.