Once again, Byju’s has chosen to defer the finalisation of severance packages for employees who were terminated between the months of September and November. This decision has been driven by the company’s ongoing financial challenges, which are the result of prior commitments made to lenders and an extended delay in securing essential funds through a fundraising initiative that has been pending for an extended period.
The postponement of these severance packages highlights the complexities and constraints that Byju’s is currently navigating in terms of finances. The company finds itself caught between its commitments to lenders, who expect timely repayments, and the need to secure additional capital through fundraising efforts.
In June, Byju’s underwent a significant workforce reduction, impacting around 1,000 employees across various departments, including mentoring, logistics, training, sales, post-sales and finance. The company justified this decision as a strategic move aimed at achieving profitability.
During the layoffs, employees were assured that their final settlements would encompass salaries for both June and July, along with additional incentives, with the payout scheduled for 15 September.
However, on 14 September, 2023, the company communicated via email to the affected employees regarding a delay in processing the sum owed to them. As per the new timeline stated in the email, employees can now anticipate receiving their outstanding payments by 17 November, 2023.
The email conveyed that the complete and final settlement would be disbursed for sure by 17 November, 2023. The company also expressed regret for all the trouble the delay may have caused.
