Byju’s Moves to Remote Work, Closes All Offices Except Headquarters for 14,000 Employees: Report
Byju’s is facing challenges related to cash-flow issues and is currently involved in a disagreement with creditors concerning a $1.2 billion loan.
In response to the ongoing crisis, Edtech company Byju’s has instructed its 14,000 employees to telecommute, while also vacating all offices except for the headquarters in Bengaluru.
According to sources informed by NDTV Profit, the edtech giant has vacated all office premises across the country except for IBC Knowledge Park in Bengaluru, where more than 1,000 employees are based.
NDTV Profit reported that over the past few months, the company has been undergoing a process of not renewing several office contracts in various cities, aiming to reduce costs.
Nevertheless, as per the report, approximately 300 of Byju’s tuition centers, where students in classes 6-10 attend physical classes, will remain operational.
Byju’s is facing cash-flow challenges and is currently entangled in a disagreement with creditors regarding a $1.2 billion loan. The company, previously valued at over $20 billion, has witnessed its valuation plummet by an estimated 90 percent in the last year.
Last month, major stakeholders of Byju’s voted to oust Byju Raveendran from his position as chief executive officer (CEO) and revoke his responsibilities.
Byju’s dismissed the decision, stating that the resolution was adopted during a meeting attended solely by a “limited group of specific shareholders.” “Byju’s unequivocally asserts that the resolutions approved during the recently concluded extraordinary general meeting… are null and void,” the company stated in a press release.
Following a string of crises, including the departure of auditor Deloitte due to corporate governance concerns and a legal dispute with US lenders, Byju Raveendran has found himself without the backing of significant investors. Last month, Raveendran informed employees via a written communication that the company was unable to disburse February salaries due to funding constraints stemming from investor restrictions.
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