Byju’s announces new layoffs amid financial challenges

Byju

Think and Learn Pvt Ltd, the parent company of Byju’s brand, has initiated another round of layoffs, impacting between 100 and 500 employees. The company has opted for phone calls to inform affected staff, bypassing traditional procedures such as performance improvement plans (PIP) or notice periods. This move comes as the firm faces significant financial difficulties, with more than 10,000 employees having been let go in the past two years.

The layoffs are part of a broader series of challenges by Byju’s, including a legal battle wherein four investors have filed a suit against the company’s management for oppression and mismanagement. The case, presented before the National Company Law Tribunal (NCLT) in Bangalore, seeks the removal of the founders, including CEO Byju Raveendran, and appointment of a new board. Despite these troubles, the NCLT recently allowed a scheduled extraordinary general meeting (EGM) to proceed, rejecting a stay on the March 29 event.

Amidst these operational and legal hurdles, Byju’s has also undertaken cost optimisation efforts, closing 30 of its 292 tuition centers. However, the company remains optimistic about the future, indicating that it expects most centres to become profitable by its third year of operation. Byju’s praised its teachers’ dedication and the performance of its students, emphasising a commitment to a hybrid educational model that leverages the latest technology. Furthermore, the company noted that most current students have re-enrolled for the upcoming academic year, thanking students and parents for their continued trust and support.

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