- Byju’s has made a strategic decision to give up almost all its office spaces across India as part of a significant cost-cutting initiative.
- This move comes amidst an ongoing dispute with investors and a need to address a looming liquidity crisis.
- Byju’s has mandated all employees, except those working at its tuition centers, to work remotely indefinitely.
- The company has been facing financial strain, evident from its delay in disbursing salaries to a significant portion of its workforce.
- The delay in salary payments has affected about 75% of the company’s employees, amounting to close to 14,000 individuals.
- Byju’s management has taken steps to alleviate the financial strain on its employees by disbursing part of the pending February salaries.
- Byju’s remains focused on its mission to provide quality education and is taking necessary measures to ensure business continuity and employee welfare amidst ongoing challenges.
Byju’s, a prominent player in the edtech sector, has made a strategic decision to give up almost all its office spaces across India as part of a significant cost-cutting initiative. This move comes amidst an ongoing dispute with investors and a need to address a looming liquidity crisis. Byju’s has mandated all employees, except those working at its tuition centers, to work remotely indefinitely.
The decision to relinquish office spaces coincides with Byju’s grappling with a dispute regarding the validity of funds raised through a recent rights issue offering. The company has been facing financial strain, evident from its delay in disbursing salaries to a significant portion of its workforce. The delay in salary payments has affected about 75% of the company’s employees, amounting to close to 14,000 individuals.
According to sources within the company, the closure of offices was part of a restructuring plan led by Byju’s India CEO Arjun Mohan. This plan has been in progress for over six months, with offices being shut down as their leases expired. Byju’s decision to retain only its headquarters at IBC, Knowledge Park, Bengaluru, underscores its commitment to streamline operations and optimize costs amid financial uncertainties.
Byju’s management has taken steps to alleviate the financial strain on its employees by disbursing part of the pending February salaries. However, the remaining balance will be paid once the funds from the rights issue are accessible, which the company expects shortly. This move follows founder Byju Raveendran’s assurance to pay salaries by March 10, acknowledging the challenges posed by the ongoing dispute with investors.
The edtech giant has faced significant challenges in recent times, including a reduction in venture capital funding and a decline in demand for online learning services. Despite these setbacks, Byju’s has undertaken measures to address its financial woes. Initiatives such as securing capital from early investors, establishing an advisory council, and appointing a new CEO demonstrate the company’s commitment to overcoming its challenges.
Byju’s decision to transition to remote work and shutter most of its office spaces reflects the company’s proactive approach to address financial difficulties and adapt to changing circumstances. While navigating through turbulent waters, Byju’s remains focused on its mission to provide quality education and is taking necessary measures to ensure business continuity and employee welfare amidst ongoing challenges.
(With inputs from agencies)
