Byju’s Layoffs Spark Controversy (Image Source: iStockphoto)
Edtech company Byju‘s has initiated layoffs without providing employees with a performance improvement plan (PIP), as reported by Moneycontrol, citing insider sources. The company’s approach to the layoffs reportedly includes informing employees via phone calls and bypassing the customary notice period.
Moreover, Byju’s has faced criticism for yet another delay in the disbursement of salaries. The management attributed this setback to an interim order obtained by “a few misguided foreign investors” in late February. This order has reportedly restricted the utilization of funds raised through a successful rights issue, leading to the salary disbursement delays.
In a communication to employees, Byju’s management expressed regret over the situation, emphasizing their efforts to mitigate the impact. The management assured employees of their commitment to resolving the salary delay issue by utilizing a parallel line of credit, with the aim of disbursing salaries by April 8.
As reported by the Hindustan Times, Byju’s spokesperson told Moneycontrol, “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. We are going through an extraordinary situation in the company because of the ongoing litigation, where every employee and the ecosystem itself is going through tremendous stress given the present circumstances.”
The mail read, “This is to confirm that your last working day with Think and Learn Pvt Ltd will be March 31, 2024. Your full and final settlement will be done as per the exit policy. Please hand over all the assets and proprietary information of the Company that are in your possession to enable processing your full and final settlement. In case of any queries on exit formalities, please contact separations@byjus.com.”
