BYJU'S delays final settlements of laid-off employees yet again
What's the story
BYJU'S, the ed-tech giant based in Bengaluru, has once again failed to meet the deadline for providing full and final settlements to employees who were laid off, as per Moneycontrol.
The company had previously postponed the payment date from September to November 17.
Throughout the first nine months of 2023, BYJU'S conducted multiple rounds of layoffs due to a liquidity crisis, pending lender repayments and an anticipated fundraising round.
Details
Majority of former employees await settlements
Out of the 48 former employees who spoke with Moneycontrol, 40 reported that they have not yet received their full and final settlements.
Among the remaining eight who claimed to have been paid, two or three did not receive their variable pay or incentives.
According to Moneycontrol, payments are being made in phases on a weekly basis.
What Next?
Job market challenges for laid-off employees
The job market has proven difficult for many of the laid-off employees seeking new employment opportunities.
BYJU'S terminated approximately 1,000 staff members across various departments in June and an additional 400 in August.
Employees who were laid off between May and July were initially told they would receive their salaries and incentives by September 15, but the company later pushed back the disbursement date to November 17.
Insights
BYJU'S restructuring and financial troubles
Arjun Mohan, BYJU'S recently appointed CEO of India operations, has launched a major restructuring plan that could affect between 4,000-5,000 jobs.
The company has faced backlash for issues related to employees, such as delayed provident fund payments, mass layoffs, and withholding incentives.
In September, BYJU'S submitted a proposal to lenders stating its intention to repay entire $1.2 billion (Rs. 10,000 crore) term loan within six months and planned an initial payment of $300 million (Rs. 2,500 crore) within three months.