Byju’s, the Indian ed-tech startup, has begun its second round of job cuts, laying off employees from different departments. The job cuts come when the tech startup faces tension with lenders.
According to a report from MoneyControl, the human resources team at the Byju\u2019s held individual discussions with employees and in-person meetings to communicate about their job cuts. Some employees were informed about the layoffs beginning on June 14.
After the discussions, employees were given the option to resign voluntarily, told sources. Their email addresses were deactivated, and they were asked to submit their official identity cards.
The job cuts will impact more than 1,000 employees from various departments, including mentoring, logistics, training, sales, post-sales, and finance, with the majority of the impact falling on senior staff members who have worked there for over two years.
Sources have told that the ed-tech company plans to provide all affected employees with two months’ salary for June and July. A full and final settlement will be sent by September-October, approximately 45 days after July. The HR department has informed employees that no additional severance will be given beyond this.
Byju’s failed to become profitable by the end of FY23 despite implementing cost-cutting strategies and letting go of over 2,500 employees.
Byju’s has been spending a third of its total expenses on them in 2020-2021. However, some employees have complained about not receiving appraisals or incentives this year. Others were laid off just before receiving variable pay and had trouble with their provident fund contributions.
The ed-tech company currently employs around 40,000 people.
The layoffs come in time when Byju\u2019s defaulted on $40 million in interest on a loan. The company is currently in discussions with lenders and has filed a case against one of them.<\/div>\n