Amid financial constraints, educational technology giant Byju's has initiated significant layoffs, affecting hundreds of its workforce. The company, currently undergoing a crucial phase of business restructuring, announced the impending layoffs without providing a notice period.
In a recent statement to IANS, Byju's addressed the ongoing situation, attributing it to the final stages of a restructuring initiative set in motion back in October 2023. This initiative aims to streamline operational structures, trim costs, and enhance cash flow management within the organization. Despite these efforts, the company still grapples with unsettled salary payments for its employees in March.
Over the past two years, Byju's has been compelled to undertake multiple rounds of layoffs, signaling the strain of insufficient funding and legal disputes with investors and other stakeholders. A company spokesperson acknowledged the immense pressure on employees and the broader ecosystem due to ongoing litigation with four foreign investors.
Adding to the challenges, Byju's encountered delays in salary disbursals for the second consecutive month. Citing an interim order obtained by "misguided foreign investors" in late February, the company communicated the restrictions on utilizing funds raised through a rights issue. Regrettably, this situation led to further delays in salary payments, as conveyed through an email from the management to the employees.
The evolving circumstances underscore the complexities faced by Byju's as it navigates financial hurdles and legal entanglements while striving to sustain its operations and support its workforce.
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