Byju’s, the troubled edtech firm, has taken a significant step in its cost-cutting efforts. It has relinquished all its office spaces across India, except for its headquarters located at Bengaluru’s Knowledge Park. This move comes as the company grapples with an imminent liquidity crisis and ongoing disputes related to fund usage.
Here are the key points:
- Office Space Reduction: Byju’s has given up all its offices across the country, retaining only its Bengaluru headquarters. Employees are now mandated to work from home indefinitely, except for those working at nearly 300 Byju’s Tuition Centres across India.
- Liquidity Crisis: The decision to vacate office spaces is aimed at addressing the imminent liquidity crisis faced by the company.
- Background: Byju’s has been embroiled in a dispute over the validity and usage of funds raised through a recently concluded $200 million rights issue.
- Restructuring Plan: The closure of all offices in the country is reportedly part of Byju’s India CEO Arjun Mohan’s restructuring plan. The company has been gradually shutting down offices as leases expire.
- Salary Disbursement: Byju’s recently disbursed a portion of pending salaries for all employees for the month of February. The remaining balance will be paid once the company can utilize the funds from the rights issue.
- Employee Count: Currently, Byju’s has around 14,000 employees in India. Alternate funding arrangements have been made to support their daily lives.
- Challenges: Byju’s has faced challenges including layoffs, dwindling venture capital funding, reduced demand for online learning, and legal disputes with investors. The company is also yet to submit detailed financial results for FY23 to the Ministry of Corporate Affairs.
Despite these difficulties, Byju’s continues to navigate the educational landscape, with strategic moves such as promoting Arjun Mohan as CEO and establishing an advisory committee with industry experts.
