Edtech giant BYJU’S has released 100 employees from its post-sale division as part of a performance review process. These employees were initially placed on a performance improvement plan (PIP) but did not meet the expected standards.
Clearing Misconceptions About the Decision
A spokesperson from BYJU’S clarified that this move was not a cost-cutting measure or a layoff exercise. The decision was taken after a thorough periodical performance review, and the impacted employees were those who did not meet the company’s expectations despite being on a performance improvement plan.
BYJU’S New Hires in the Post-Sale Division
In contrast to the layoffs, BYJU’S revealed that it has recently recruited 200 new professionals for the post-sale division as part of the company’s commitment to enhancing this division’s capabilities.
Larger Impact on Other Divisions
Media reports suggest that this decision has impacted over 400 employees from the mentoring and product expert divisions, beyond the post-sale division. Moneycontrol first reported this development.
BYJU’S Struggles Amid Ongoing Challenges
BYJU’S is experiencing various challenges. These challenges include financial problems, legal conflicts with lenders, employee layoffs, resignations of board members, reductions in valuation, and postponed financial reporting. The edtech giant recently underwent at least 2,600 employee layoffs, adding to the series of retrenchments. The delay in filing financial statements has contributed to the company’s net loss of INR 4,588 crore in FY21. BYJU’S has obtained relief in restructuring its substantial debt. The company is currently negotiating with lenders regarding its term loan and credit line.
The company’s ongoing struggle with various challenges has emphasized the importance of addressing financial transparency and operational stability.
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