Byju’s, a prominent player in the ed-tech sector, reportedly initiated another round of layoffs effective March 31, impacting nearly 500 employees according to informed sources. Over half of those affected are said to be from various Byju’s Tuition Centers (BTC) that were closed within the past week.
Last month, the company claimed to have approximately 15,000 employees, but in a cost-cutting move announced in October last year, it disclosed plans to lay off about 4,500 employees across all departments under the leadership of newly appointed India CEO Arjun Mohan. Over the past two years, the company has let go of approximately 10,000 employees across different areas.
A spokesperson for Byju’s stated, “We are nearing the completion of a business restructuring initiative announced in October 2023 aimed at streamlining operations, reducing costs, and enhancing cash flow management. The ongoing litigation has created extraordinary circumstances within the company, causing significant stress for employees and the ecosystem.”
According to some employees interviewed, they were notified via phone call on Friday that their positions were being terminated. One employee, speaking anonymously, recounted, “I received a WhatsApp call informing me that March 31 would be my last day. Subsequently, my company account was deactivated. I haven’t had the opportunity to secure documentation regarding accrued leave balance and other essential formalities that could impact my final settlement.”
Another affected employee from the sales division stated, “HR instructed me to either resign immediately or face termination. I was informed that if I chose to resign voluntarily, I would receive my pending February payment along with my March salary. No notice period was required; instead, those days were categorized as gardening leave, to be included in the final settlement.”
The company has reportedly not fulfilled obligations such as PF, TDS, and full and final (FNF) dues for most employees since June of the previous year. However, it has recently started settling FNF dues for a portion of employees following pressure from Labor Departments in Karnataka and West Bengal. Despite the non-depositing of PF and TDS, payslips as recent as February reviewed by sources show these deductions.
These developments come after the company informed its employees of a delay in salary disbursement for March, having previously held back February salaries and partially disbursing them by mid-March. Notably, February payslips reflect the full salary amounts instead of the partial amounts released. In a letter to employees, the company attributed the delay to $200 million in rights issue funds being held in escrow due to an NCLT order. The tribunal is scheduled to hear an oppression and mismanagement suit filed by dissenting investors on April 4.
