Byju’s WFH: Crisis-hit edtech major Byju’s announced ‘work from home’ for its 14,000 employees on Monday. According to a report by the MoneyControl, Byju’s has also decided to vacate almost all its office spaces except for the Bengaluru-based headquarters. The work from home mandate also has an exception. Those who are working at the 300 tuition centres of Byju’s across India will have to come to the office. The work from home mandate has been implemented for indefinite period.
Byju’s has been facing severe liquidity crunch. The edtech giant is engaged in an intense battle with its investors over latest fund-raising.
The decision to announce indefinite work from home mandate comes days after Byju’s completed part payment of salaries of fraction of its employees. According to the MoneyControl report, 75 per cent of the staff has not received its salary so far. The company has told the employees that the salaries will be paid once it is allowed to use funds from the latest rights issue.
The step to give up office space was part of the plan by Byju’s CEO Arjun Mohan, the MoneyControl report added.
Last month, company’s founder and CEO Byju Raveendran had written a mail to the staff. In the letter, he said that the company faced challenges due to a lack of capital, and “now we are experiencing a delay despite having funds”.
He wrote: “Unfortunately, a select few (four out of our 150-plus investors) have stooped to a heartless level, ensuring that we are unable to utilise the funds raised to pay your hard-earned salaries. At their behest, the amount raised through the rights issue is currently locked in a separate account.”