Byju’s starts layoffs via phone calls amid financial strain: Report
Embattled Edtech firm Think and Learn, which owns Byju’s brand, has started another round of lay-offs via phone calls without giving the employees notice periods amid dire financial strain, Moneycontrol reported on Tuesday.
“Byju’s has initiated layoffs on phone calls, letting go employees without putting them on a performance improvement plan (PIP) or having them serve a notice period,” a Moneycontrol report said citing sources.
ALSO READ: Byju’s delays salaries for third month in a row, blames ‘foreign investors’
The number of layoffs in this round could be between 100 and 500 employees, it added.
In last two years, Byju’s had sacked more than 10,000 employees as the company grapples with dwindling funds.
A group of four investors of Byju’s had filed an oppression and mismanagement suit against the company management before the National Company Law Tribunal’s (NCLT), Bangalore bench, seeking to oust the founders, including CEO Byju Raveendran. The investors also sought a new board.
On March 28, the NCLT had declined to grant a stay on the extraordinary general meeting (EGM) on March 29 called by Think and Learn.
ALSO READ: Byju’s woos dissenting investors after winning vote to boost share capital
So far, Byju’s has closed 30 out of its 292 tuition centres as part of cost optimisation measures.
The edtech firm had said that it aims to turn most of the centres profitable in the third year of their operations.
“BYJU’S is immensely proud of the dedication of its teachers and the performance of its students. BYJU’s focus on quality with efficiency is helping most of its centres turn profitable in their third year,” Byju’s had said in a statement. “Ninety per cent of its tuition centres, i.e. 262 out of 292, will continue to function in this novel hybrid model, integrating the best and the latest technology in the coming years.”
“Most of our current students have already signed up for the next academic year (2024-25) and BYJU’s thanks both the students and parents for their trust, confidence and support,” the company had said.
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Published: 02 Apr 2024, 02:44 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.