Ed-tech major Byju’s is understood to have initiated another round of layoffs since March 31 and sources aware of the matter said close to 500 employees have been impacted. Over 50% of the affected employees are from various Byju’s Tuition Centers (BTC) that have been shut over the past week, sources added.
The company which claimed to have around 15,000 employees on its payroll until last month, had in October last year announced that it would layoff around 4,500 employees across all functions as part of its cost cutting strategy under the newly appointed India CEO Arjun Mohan. In the past two years, the company has laid off around 10,000 employees across functions.
“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,” a Byju’s spokesperson said in a statement.
Some employees that Fe spoke to, claimed they were informed on Friday through a call that their roles were not required anymore.. “I received a WhatsApp call on Friday where I was informed that March 31 would be my last working day. Soon after this my company account was deactivated. I haven’t had the chance to collect proof of balance in earned leave, and other such important formalities that could impact my full and final settlement. This has happened despite me meeting all set targets,” said one of the employees under conditions of anonymity.
“I was told by the HR to either resign immediately or face termination. I was told that , if I accepted the offer to resign voluntarily, my pending February payment would be released along with my March salary. I have not been asked to serve a notice period. Instead those days have been provided as gardening leave which will be accounted for in the full and final settlement,” another affected employee from the sales division added. As reported earlier the company has not paid PF, TDS, full and final (fnf) dues of most employees since last June. However, over the past few weeks it has begun settling fnf dues for a section of employees after being urged by Labour Departments in Karnataka and West Bengal. Despite not depositing PF and TDS, payslips of employees as late as from February, which were reviewed by Fe, reflect these deductions.
The development comes after the company informed its employees of a delay in salary disbursement for the month of March, after having held back February salaries and then later paying back some of the dues by mid-march. However, February payslips, reflect the entire salary amounts instead of the partial amount released. In a letter to employees, the company attributed the delay to its $200 million rights issue funds being locked in an escrow account owing to an NCLT order. The tribunal is scheduled to hear the oppression and mismanagement suit filed by dissenting investors on April 4.