The struggling edtech business Byju’s has closed all of its offices in India, keeping just its headquarters at IBC, Knowledge Park in Bengaluru, as part of a massive cost-cutting move to deal with the impending liquidity problem.
This occurs at a time when the business and its investors are at odds over the legitimacy of the money received from a recently completed rights issue offering.
Following this decision, the company has required all employees—aside from those who work out of about 300 Byju’s Tuition Centers across the nation—to work from home for an undetermined period of time.
Additionally, the corporation has withheld a portion of the February salary for roughly 75% of its workforce at this time. Currently, the company employs about 14,000 people in India. After a few days of delay, Byju’s released the payments and made a commitment to settle the remaining amount as soon as it was permitted to use the money from the recently concluded rights offering.
The decision to close all offices nationwide was reportedly a component of Byju’s India CEO Arjun Mohan’s reorganization plan, according to people close to the business.
“This has been in works for over six months. The company has been shutting down offices across country as soon the lease for each expired,” said the source.
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