BYJU’S, the edtech firm based in Bengaluru, has delayed the full and final (FnF) settlement for recently laid-off employees due to various challenges, including financial constraints, sources familiar with the matter have revealed. In June, the company laid off over 1,000 employees who were slated to receive their pending salaries as part of their FnF settlements by September 15. However, the FnF settlements for these employees have been postponed by at least a couple of months, as reported by Moneycontrol. BYJU’S is expected to fulfill the final settlements for these employees by November 17, as indicated in the report.
In response to queries, a spokesperson from BYJU’S stated, “We regret and acknowledge the delays in settling dues of former employees. As we work through a difficult business restructuring, we are committed to meeting all our obligations as soon as possible.”
Over the past year, the edtech firm has implemented multiple staff reductions as part of its ongoing cost-cutting initiatives. In recent weeks, BYJU’S has also witnessed several high-level departures. Additionally, its test preparation subsidiary, Aakash Educational Services, has formed an executive council with the task of identifying and appointing new CEOs and CFOs.
Simultaneously, the company has been focusing on repaying the debt associated with a $1.2 billion term loan B (TLB). It is also exploring the sale of two of its assets, Epic and Great Learning, to generate a minimum of $800 million. BYJU’S is in discussions to secure equity investments from sovereign funds based in the Middle East. With an equity raise and asset monetization, The Bengaluru-based company is expected to complete its FY22 audit by the end of September.
