It seems that all is not well at BYJU’s. The company, which has experienced rapid growth in recent years, is facing hurdles on the employee front.
First, a video surfaced showing an employee confronting senior management, which quickly went viral.
Last month, the company received a notice from the Employee Provident Fund Organisation (EPFO) regarding irregularities in provident fund (PF) contributions. Despite this, the company has not paid the provident fund contributions for a majority of its employees.
Reports indicate that PF contributions were made for only 738 employees in June, whereas the previous month saw the company paying PF contributions for 25,000 employees.
According to EFPO data, BYJU’s had close to 60,000 employees on its payroll in September 2022.
Media reports also suggest that BYJU’s has laid off over 2,000 employees and shifted a majority of its workforce to contractual employment.
BYJU’s managed to avoid a workers’ strike by assuring employees that there will be no further layoffs at their tuition centers. The edtech major’s COO, Mrinal Mohit, held an impromptu virtual chat to directly address workers’ concerns on July 22.
Workers had been facing issues such as delayed incentives and no appraisals since March, leading them to consider a strike starting from July 25.
Apparently, BYJU’s has also given up its biggest office space in Bengaluru.
In FY21 (2020-21), BYJU’s reported a huge jump in losses to more than Rs 4,500 crore, while its revenue dropped marginally. However, in 2022, it raised a massive $800 million round at a $22-billion valuation.