Financial crunch: Byju's to lay off 500 employees
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New Delhi: In a fresh update from the edtech firm Byju's, the company has decided to lay off around 500 employees, to fight the financial crunch. The laying off, which started 15 to 20 days ago, includes employees from sales, too, PTI reported.
Though there is no official word from the firm, the layoff is expected to affect sales functions, teachers and some tuition centres. However, the company states that there would not be any further rationalisation except in the 'worst case scenario'.
Some staff members purportedly communicated over the phone about the development.
When contacted, Byju's spokesperson, in an email response, said, "We are in the final stages of a business restructuring exercise announced in October 2023 to simplify operating structures, reduce the cost base, and better cash flow management".
"As you are also aware, we are going through an extraordinary situation in the company because of the ongoing litigation with four foreign investors, where every employee and the ecosystem is going through tremendous stress, given the present circumstances," the spokesperson said.
Byju's said that it regrets the "unfortunate situation" the company has been forced into.
"Still, it is something that we will put behind us soon with majority investor support for the USD 200 million rights issue. We request everyone's understanding of the individual and collective stress on the system, which might be prompting some unforeseen situations for the departing employees," Byju's spokesperson said.
In October and November 2023, the firm laid off 2,500-3,000 employees after informing that it is performing a business rehaul and warning that some 4,500 employees will be affected.