In a recent development, edtech giant Byju’s has initiated a new round of layoffs impacting over 400 employees within the mentoring and product expert division. Those employees who underwent a performance review last month were reportedly requested to submit their resignations on August 17. The exact number of affected workers, however, is a point of contention.
Multiple current and former employees conveyed to Moneycontrol that the HR department notified around 400 employees about the layoffs on Thursday. Byju’s, on the other hand, contradicts this figure, asserting that this move was not aimed at cost-cutting and affected approximately 100 individuals. According to a spokesperson, employees who failed to meet expectations despite being given a performance improvement plan were “let go with proper procedures.
“Sources indicated that HR informed employees of their email addresses being deactivated within the next two hours and instructed them to download essential documents, the publication reported.
Employees disclosed that around 400 individuals received communication from HR on Thursday, followed by an immediate request to initiate the exit process during the call.This development closely follows Byju’s announcement of the appointment of former Infosys executive Richard Lobo to lead the company’s human resources operations.
Once holding the distinction of being the world’s most valuable edtech firm, Byju’s has faced a series of challenges in recent months. Its auditors resigned, anti-money laundering officials conducted searches at its offices, and several board directors resigned. The beleaguered firm also missed yet another target date set by its creditors to amend terms of a $1.2 billion debt earlier this month. Additionally, it’s currently entangled in a creditors’ lawsuit as part of the ongoing dispute.
In a recent development, legal representatives for the Bengaluru-based company disclosed in a US court that lenders had fabricated false default claims linked to $1.2 billion in loans as part of a strategy to take control of Byju’s. This ongoing dispute has prompted certain investors to devalue their stakes in the education technology provider.
