Amid an impending liquidity crisis, Byju’s, the embattled edtech firm, has implemented a substantial cost-cutting measure by relinquishing all its offices across India, with the exception of its headquarters at IBC, Knowledge Park, Bengaluru.
This move coincides with ongoing disputes between the company and its investors regarding the legitimacy of funds raised through a recent rights issue offering. Consequently, Byju’s has mandated all employees, except those stationed at its headquarters and approximately 300 Byju’s Tuition Centres nationwide, to work remotely indefinitely.
Simultaneously, Byju’s has faced scrutiny for delaying part of February salaries for around 75 percent of its 14,000 employees in India. Although the payments were eventually disbursed after a 10-day delay, the company has assured to settle the outstanding amounts once it gains access to the funds from the concluded rights issue.
Earlier, it was reported that Byju’s disbursed parts of pending salaries to all the employees for February as it attempted to clear the balance once it is allowed to use the funds from the closed rights issue.
According to sources familiar with the matter, this decision to shutter all offices across the country aligns with a restructuring plan spearheaded by Byju’s India CEO, Arjun Mohan. This strategic overhaul has been underway for over six months, with the company systematically closing offices as their leases expire.
“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, CapTable reported citing people in the know.
