Byju's initiates layoffs amid financial struggles

Byju's, a prominent education technology company, has recently announced a round of layoffs affecting approximately 500 employees. According to reports from The Economic Times, these employees were notified of their termination over the phone and were not provided the option to serve a notice period.

Financial challenges and restructuring

The layoffs come during a challenging period for Byju's, as the company is facing financial difficulties in maintaining its operations smoothly. Sources familiar with the situation mentioned that about 240 of the affected employees were part of Byju's Tuition Centre operations, with others working in different business verticals such as K-10 and examination preparation.

A manager from the company cited in the report explained that the layoffs were necessary due to Byju's financial constraints. He mentioned that the company had to select the least productive employees over an eight-week period. Notably, the employees were not placed on a performance improvement plan (PIP) or given prior notice of the layoffs.

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Business restructuring plan

In response to the layoffs, a Byju's spokesperson stated that the company is in the final stages of a business restructuring exercise announced in October 2023. The goal of this exercise is to simplify operating structures, reduce costs, and manage cash flow more effectively. However, specific numbers of affected employees were not disclosed.

This news follows earlier announcements to employees about delayed salaries due to disagreements with investors. The investors reportedly restricted Byju's access to funds raised through a rights issue. This situation has added to the challenges faced by employees, who are now grappling with the uncertainty of their employment status amidst the company's restructuring efforts.

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