{"id":16532,"date":"2024-04-02T21:56:06","date_gmt":"2024-04-02T21:56:06","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/02\/byjus-lays-off-about-500-staffers-nearly-half-from-tuition-centre-business\/"},"modified":"2024-04-02T21:56:06","modified_gmt":"2024-04-02T21:56:06","slug":"byjus-lays-off-about-500-staffers-nearly-half-from-tuition-centre-business","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/02\/byjus-lays-off-about-500-staffers-nearly-half-from-tuition-centre-business\/","title":{"rendered":"Byju\u2019s lays off about 500 staffers, nearly half from tuition centre business"},"content":{"rendered":"
\"Byju\u2019s<\/div>


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Troubled edtech Byju’s has laid off about 500 staffers<\/a>, largely across sales and marketing functions, at a time when it is struggling to raise capital for day-to-day operations, as per sources familiar with the development.<\/p>\n

ET has learnt that about 240 of those affected worked in Byju\u2019s Tuition Centre<\/a> operations while the rest were employed across its broader business verticals of K-10 and examination preparation.<\/p>\n

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A senior manager at the organisation told ET on condition of anonymity that the layoffs<\/a> are the result of a cash crunch<\/a> and involved identifying the least performing staffers at the firm over a period of eight weeks. However, the employees were not placed on a performance improvement plan (PIP) or given any notice, he added.<\/p>\n

“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,\u201d a company spokesperson said in a statement, declining to share specifics on the numbers impacted.<\/p>\n

ET had exclusively reported in September 2023, that the Bengaluru-headquartered firm was set to cut the headcount <\/a>by a third or about 4,000-4,500 people to further tighten costs. <\/p>\n

The latest development comes a day after employees were informed on Monday that their salaries will be delayed due to actions by warring investors <\/a>that have restricted usage of funds through a rights issue.<\/p>\n

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\u201cThere is still business that is incoming but it has just become very hard to convert potential leads to customers than before\u2026 we are not getting our salaries also. There is no clarity on what other sources of money exist for the company,\u201d an employee at Byju\u2019s<\/a> Tuition Centre told ET on condition of anonymity.Employees have told ET that the company has internally assured them that salary arrears including a significant portion of February\u2019s pay and the full March payout will be made by April 8.<\/p>\n

Last week, the National Company Law Tribunal (NCLT), Bengaluru, refused to stay Byju\u2019s extraordinary general meeting (EGM) scheduled for March 29 <\/a>to increase its authorised share capital to account for a $200-million rights issue.<\/p>\n

The rights issue is happening at a 99% discount to the company\u2019s peak valuation of $22 billion. Any investor not participating in such a funding will see their shareholding wiped out post the completion of the rights issue.<\/p>\n

The statement shared by a Byju\u2019s spokesperson on Tuesday added that the \u201cunfortunate\u201d layoffs situation is something the company will put behind it soon with majority investor support for the $200-million rights issue.<\/p>\n

The development was first reported by news website Moneycontrol.<\/p>\n<\/div>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Troubled edtech Byju’s has laid off about 500 staffers, largely across sales and marketing functions, at a time when it is struggling to raise capital for day-to-day operations, as per sources familiar with the development. ET has learnt that about 240 of those affected worked in Byju\u2019s Tuition Centre operations while the rest were employed […]<\/p>\n","protected":false},"author":2,"featured_media":16533,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/img.etimg.com\/photo\/88591548.cms","fifu_image_alt":"","footnotes":""},"categories":[607],"tags":[449,8076,21832,21453,411,7610,8111,22085,13301,22086],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/16532"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=16532"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/16532\/revisions"}],"predecessor-version":[{"id":16534,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/16532\/revisions\/16534"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/16533"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=16532"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=16532"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=16532"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}