Byju’s has once again postponed the full and final settlement for its terminated employees.
The company has reportedly laid off around 7,000 employees in multiple rounds since the beginning of 2022. Last month, the company let go of 600 employees from its marketing and content teams, and it had promised to settle their payments by 17 November. The payments are being made gradually, with October dues already settled, but employees laid off in June and July are still awaiting their final settlements.
This restructuring follows the appointment of Arjun Mohan, CEO, Byju’s, and has impacted an estimated 4,000–5,000 jobs. This move is part of the company’s reorganisation efforts aimed at simplifying operations, reducing costs and increasing cash flow. The process is expected to be completed in the coming weeks, with the goal of making the company more sustainable. In recent months, Byju’s has also experienced several departures at the senior level.
Over the past year, as Byju’s engaged in workforce trimming to cut costs, it has faced criticism for various employee-related issues.
The company has been struggling to figure out how to repay a $1.2 billion loan and may need to sell two of its businesses to improve its financial situation. However, the expected sale proceeds are only around $800 million.
In a positive turn of events, Byju’s resolved its issues with the US-based lender, Davidson Kempner, which had been pending for some time now. Earlier this month, Ranjan Pai, chairman, Manipal Group, acquired the debt investment from the US hedge fund.