Going through a significant cash crunch, the struggling edtech startup, Byju’s, has now shortened the required notice period for its employees. The move is aimed to manage its working capital shortage.
The notice period has reportedly been cut to 15 days for employees at all three levels, 1, 2 and 3. The decision is also applicable to executives, associates, specialists, senior executives, senior associates and senior specialists, as well as team leads. Previously, the notice period varied from 30 to 60 days based on seniority.
Level 4 employees, comprising assistant managers and above, will now have to serve a notice period of 30 days. Previously, this period could extend to 60 days based on the specific role.
The decision will establish uniformity in the company’s policies, while also standardising the notice period across all levels. Additionally, it will reduce costs, particularly as founder Byju Raveendran is reportedly taking loans against his homes to secure funds for employee payments, as reported by Bloomberg.
Previously, Byju’s has experienced a rapid decline in the past 15 months, witnessing a significant drop in valuation. The company is currently embroiled in various legal battles, including a $1.2 billion term loan B dispute with lenders, a National Company Law Tribunal insolvency petition initiated by the Board of Control for Cricket in India, and allegations of Foreign Exchange Management Act violations totalling Rs 9,300 crore.
Recently, Byju’s employees experienced salary delays due to a technical glitch affecting about five per cent of the workforce. The glitch impacted individuals across different organisational levels, except for those associated with Akash Institute.