BYJU'S shuts down offices, asks employees to work from home
The road to recovery seems distant for BYJU'S while it grapples with maintaining cash flow. In the latest move to cut costs, the ed-tech has shut most of its offices and has mandated work-from-home regime for its employees. The firm will maintain only its Bengaluru-based headquarters at IBC Knowledge Park. The new measures come amid the ongoing dispute with investors over the legitimacy of funds raised from a recent rights issue offering. It is also struggling with paying timely salaries.
Employees to work from home indefinitely
In light of office closures, BYJU'S has instructed all employees to work from home indefinitely. However, the work from home option is not available to those employees stationed at around 300 BYJU'S Tuition Centres across the nation. As per Moneycontrol, this decision is part of a restructuring plan by BYJU'S India CEO Arjun Mohan and had been in development for over six months.
Salary delays for 75% of employees
BYJU'S has also withheld a portion of February salaries for approximately 75% of its 14,000 employees in India. The company distributed the payments after several days of delay and assured employees that the remaining balance would be paid once the funds from the closed rights issue become accessible. Earlier, the company had assured the employees that all the salaries will be disbursed in phases commencing on February 2 and concluding by February 5.
Court to decide ouster of BYJU's CEO
Byju Raveendran, the founder of BYJU's has been voted out from his position as the company's CEO. His ouster now depends on the ruling of Karnataka High Court which is scheduled on March 13. Apart from a diminishing cash flow, the challenges for the once-celebrated ed-tech entail loss of investors' confidence, allegations of misappropiration of funds, bunch of insolvency notices, and bankruptcy of its subsidiaries. The Enforcement Directorare (ED) has also barred Raveendran from leaving India.
