Edtech giant Byju’s has postponed the full and final settlement payments to laid-off employees, citing ongoing “difficult business restructuring.” Previously, employees were expected to receive their outstanding payments by September 15, but according to a new timeline provided in an email, they can now anticipate receiving their dues by November 17.
A spokesperson for Byju’s expressed regret for the delay and acknowledged the challenges in settling dues for former employees. The company is committed to fulfilling its obligations promptly as it navigates its restructuring efforts.
This year, Byju’s initiated layoffs affecting approximately 1,000 employees, which was part of its optimization strategy announced last year. The strategy included the termination of 2,500 workers.
Byju’s has taken steps to generate cash, including putting two key assets, Epic and Great Learning, up for sale to raise $800 million to $1 billion. The aim is to meet various commitments, including repaying the entire $1.2 billion term loan B (TLB) within six months. The company has proposed repaying $300 million of the loan in the next three months, pending approval from lenders.
In 2021, Byju’s embarked on an acquisition spree to expand its presence in India and globally, fueled by the surge in online education during the COVID-19 pandemic. It acquired Epic, a US-based digital reading platform, for $500 million in July 2021, and Great Learning, a Singapore-headquartered player in professional and higher education, for $600 million in the same month.
Byju’s is currently in discussions with potential buyers for these assets but faces the challenge of selling them quickly and at a price that matches or exceeds its 2021 acquisition costs. A successful sale would not only help the company manage its financial situation but also address other matters, including negotiations with creditors and the ongoing shareholder dispute involving its subsidiary, Aakash Educational Services.
