Layoffs- Byju’s problems are not reducing. Even after showing the way out to thousands of employees in two rounds, the company has not come in profit. Baiju, which is looking helpless even in repaying the loan, has once again made a plan to remove the employees.
New Delhi. Troubled edtech company Byju’s has once again decided to lay off employees. On June 16 itself, the HR team of the company had informed the employees of various departments on phone and in person that their services were being terminated. This time, employees are being fired from the departments of Mentoring, Logistics, Training, Sales and Finance. Their number can be up to 1,000. The employees who will be fired by the company will be given two months salary and their full and final settlement will be done within 45 days of termination of service.
Moneycontrol According to a report, this time senior employees are being retrenched. The HR department of the company has advised the employees to voluntarily resign. The official e-mails of the employees who are to be fired have been blocked and they have been asked to submit their identity cards to the company’s office. Byju has not given any reaction on this whole episode. With this decision of the company, there is frustration and disappointment as well as anger among the employees.
An employee told Moneycontrol
that the employees were told on June 16 that it was their last day in office. Ever since the news of retrenchment by the company was published in the media, the employees were knowing the truth of these news from HR. He was told every time that the company would not fire any employee. Another employee said, “After every development, Byju Ravindran used to mail the employees and assure them that there would be no layoffs in the company. The company is doing very well. But, since October, the company has laid off twice.
Unable to repay the loan, the company
Byju is stuck in financial crisis. The company is carrying out retrenchment for non-payment of interest on the loan taken from TLB. Instead of paying the $40 million interest, Byju’s filed a case against TLB in New York court, which is yet to be decided. If the court’s decision is against Byju’s, then the company will have to pay $ 40 million (about Rs 320 crore) immediately. Byju’s is also working hard to raise $700 million, so that it can get immediate financial relief.
In October 2022, Byju had fired 2500 employees. The company’s target was to bring the company into profit by the end of the financial year 2023 by removing the employees. This target was not achieved. After this, the company took some steps to reduce the expenses. While the company is laying off employees on the one hand, on the other hand it is also recruiting employees on low packages.
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