SUMMARY
The company laid off the employees without putting them on a performance improvement plan (PIP) or having them serve a notice period
A company spokesperson said BYJU’S is in the final stages of the business restructuring exercise announced in October 2023 to reduce its costs
BYJU’S has laid off thousands of employees since 2022 and also delayed disbursement of salaries to employees for two consecutive months this year
Amid funding woes and a legal battle with its investors, troubled edtech giant BYJU’S has fired another 500 employees as part of its ongoing restructuring exercise.
The company laid off the employees without putting them on a performance improvement plan (PIP) or having them serve a notice period, Moneycontrol reported.
The company, which has adopted a work-from-home policy for most of the employees, reportedly informed about its decision to the affected employees over phone calls.
While Moneycontrol reported that the layoffs primarily impacted the sales function, a report by The Economic Times said that about 240 employees who were working in BYJU’s Tuition Centres were laid off.
Sources told ET that the company identified underperforming staff to let go over a period of 2 months.
A BYJU’S spokesperson confirmed the layoffs with Inc42. “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,” the spokesperson said in a statement.
Battling a funding crunch and multiple other issues, BYJU’S last year decided to lay off at least 4,000 employees. In November, Inc42 reported that the startup fired nearly 600 employees from the content and marketing teams.
The startup has laid off thousands of employees since 2022. Before the most recent retrenchment, BYJU’S had a headcount of around 12,000. At its peak, BYJU’S boasted a team of 50,000 people.
Apart from the layoffs, the company has also delayed the disbursement of salaries to its existing employees for two consecutive months this year. The company’s founder and CEO Byju Raveendran informed employees on April 1 that their March salaries will be delayed till April 8 and once again blamed the investors for it.
“We regret the unfortunate situation the company has been forced into. Still, it is something that we will put behind us soon with majority investor support for the $200 million rights issue. We request everyone’s understanding of the individual and collective stress on the system, which might be prompting some unforeseen situations for the departing employees,” the spokesperson said in the statement today.
Four of BYJU’S investors – Prosus, General Atlantic Singapore, Peak XV Partners, and Sofina – have moved the National Company Law Tribunal (NCLT) against the company’s decision to raise $200 Mn at a 99% valuation cut.
The NCLT has directed the edtech giant to keep the proceeds from the rights issue in a separate escrow account.
Meanwhile, BYJU’S conducted an extraordinary general meeting last month to increase its authorised share capital following the rights issue and claims to have secured the necessary votes to do so.
