Edtech firm Byju’s has instructed all 14,000 employees to work from home as it has vacated all offices except the headquarters in Bengaluru amid the ongoing crisis. Sources informed NDTV Profit that apart from the IBC Knowledge Park in Bengaluru – where over 1,000 employees are based.
The company has vacated all other office premises across the country. The process has been ongoing for the past few months as the company chose not to renew several office contracts across cities as a cost-cutting measure, as reported by NDTV Profit.
Byju’s Facing Operational Changes Amid Financial Struggles
The report stated that around 300 of Byju’s tuition centers, physical spaces where students of classes 6-10 study, will continue operating.
Byju’s has been facing cash-flow issues and is currently involved in a dispute with creditors over a $1.2 billion loan. Once valued at over $20 billion, Byju’s has witnessed a significant decline in its valuation, estimated at 90 percent over the past year.
Last month, major stakeholders of Byju’s voted to remove Byju Raveendran from his position as chief executive officer (CEO) and strip him of his responsibilities. Byju’s rejected the move, stating that the resolution was passed at a meeting attended only by a “small cohort of select shareholders.” The company declared that the resolutions passed during the recently concluded extraordinary general meeting are invalid and ineffective, as per its statement.
Byju’s Closes Regional Offices, Shifts to WFH
Cash-strapped edtech company Byju’s has relinquished all regional sales offices across India, leaving only its headquarters at IBC, Knowledge Park, Bengaluru. Sources revealed that this decision, potentially affecting over 20 offices spanning Delhi, Gurugram, Mumbai, Pune, Hyderabad, Chennai, and more, was made to curb costs amidst a severe funding crunch and valuation markdown.
Chief Executive Arjun Mohan initiated the office space restructuring several months ago, culminating in the recent closure of all regional sales offices. Consequently, the company has directed its 15,000 employees to work from home indefinitely, while staff at approximately 300 Byju’s Tuition Centres nationwide will continue to report to the office.
A person familiar with the company’s strategy noted,
“Byju’s had regional sales offices in almost all states, and when the company rolled out Byju’s Tuition Centres, there was an overlap. The new CEO decided that Byju’s Tuition Centres would double up as sales offices to increase efficiency. The tuition centers would see traffic mainly during the weekends or a few times a week, and the space didn’t get utilized most of the time, including the services of the staff.”
Byju’s CEO Change and Layoffs
Arjun Mohan replaced Mrinal Mohit as the company’s CEO in India last year. In September 2023, Byju’s decided to lay off around 4,000 employees as part of a restructuring exercise. Earlier last year, the company had laid off about 1,000 employees, and in 2022, some 2,500 workers were affected.
Byju’s has processed some portion of salaries to employees as the funds raised through a recent rights issue have been locked in a “separate account” due to the ongoing dispute with investors. Byju Raveendran, founder, and chief executive officer (CEO) of Byju’s, stated that the edtech firm was striving to ensure that salaries were paid by March 10. The company will pay the balance once the rights issue funds are available, which it expects shortly. Byju’s has appealed to the NCLT to allow it to use the funds, according to company sources.
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