Byju's staff told to work from home, as firm vacates office spaces
Edtech giant Byju’s has implemented stringent measures, instructing employees to work from home as the company vacates office spaces nationwide, except for 300 offline tuition centres. Led by Byju's India CEO Arjun Mohan, this restructuring move aims to conserve cash flow
FollowFinancially-struggling ed-tech firm Byju’s has reportedly taken more drastic measures amidst its ongoing financial challenges, reportedly instructing its employees to work from home as it vacates office spaces across the country. The company's decision to vacate all offices, with the exception of approximately 300 offline tuition centres, comes amid a restructuring plan led by Byju's India CEO Arjun Mohan.
According to reports, Byju’s has allowed leases on office spaces to expire, opting to retain only its Bengaluru-based headquarters. The move is perceived as a strategic effort to conserve cash flow, particularly as proceeds from a recent rights issue, estimated to be around $250-$300 million, remain inaccessible due to disputes with select investors, media reports said.
This development follows closely on the heels of reports indicating that Byju’s has disbursed partial salaries to over 20,000 employees for the month of February. The company has pledged to settle the remaining salary dues once it gains access to the funds from the recently concluded rights issue.
"We processed part salaries for everyone for February, late night on Friday to the extent of capital we could get outside the rights issue. The company will pay the balance once the rights issue funds are available, which we expect shortly," stated the company in its latest communication to employees.
Explaining the financial constraints faced by the company, the letter mentioned, "As you know, a group of investors has blocked the funds raised through the rights issue, rendering them temporarily unavailable for our business purposes. This situation has created an immediate financial constraint for the company."
While lower-level employees have received their full salaries, mid-to-senior-level staff have been paid partially. Byju’s has assured its employees that efforts are underway to address this issue and restore normalcy as soon as possible.
"In the interim, we have made alternate funding arrangements to ensure your daily lives are not disrupted," affirmed the company.
Employees have been informed that the pending salaries are expected to be reflected in their accounts by March 11, providing some relief amidst the financial uncertainties facing Byju’s.
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