Byju’s Lays Off 500 Employees In Fresh Round Of Layoffs

Even as Byju’s is battling its own investors in the courts, it’s simultaneously jettisoning employees to cut costs.

Byju’s has fired 500 employees in a fresh round of layoffs, ET reports. These employees were largely across the company’s sales and marketing functions — 240 of those impacted worked in Byju’s Tuition Centre operations, while the rest were employed across its broader business verticals of K-10 and examination preparation. Interstigly, the laid off employees weren’t placed on a Performance Improvement Plan (PIP) or given a notice before being asked to leave.

“We are in the final stages of a business restructuring exercise announced in October 2023 to simplify operating structures, reduce the cost base, and better cash flow management,” a company spokesperson said in a statement, but declined to share specifics on the numbers impacted.

There had been indications that Byju’s is facing yet another fund crunch. Byju’s had told employees yesterday that it was delaying employee salaries. “We are writing to you today with a heavy heart but with a message of hope and reassurance,” Byju’s had said. “We regret to inform you that there will again be a delay in the disbursement of salaries. A few misguided foreign investors in Byju’s have obtained an interim order in late February which has restricted usage of the funds raised through the successful rights issue. This irresponsible action by the 4 foreign investors has compelled us to temporarily hold the disbursal of salaries until the restriction is lifted,” it had added.

Byju’s has been looking at increasingly drastic ways to cut costs over the last few quarters. It has given up many of its office spaces to save on rents, and some employees were even evicted from its Gurgaon offices when the company was unable to pay for their use. The company has also given up sponsorship of the Indian cricket team, and also terminated its contract with footballer Lionel Messi. It’s also laid off thousands of employees in multiple rounds of layoffs.

Byju’s needs to save every rupee it possibly can. The company had issued a rights issue at a valuation of just $225 million, which is a 99 percent cut from its peak valuation of $22 billion. It’s also currently embroiled in multiple legal disputes with its investors, which have already voted to remove founder Byju Raveendran and his family from the company. And with investors looking to oust the founder himself, it’s no surprise that rank and file employees of Byju’s are facing an uncertain future themselves.