Byju’s starts fresh round of layoffs, fires hundreds of employees with immediate effect notice

Byju's has triggered a fresh wave of distress as it embarks on a series of abrupt layoffs, sending shockwaves through its workforce. Rahul, an employee, was caught off guard when he received a call from the HR department on March 31, informing him of his immediate termination due to the company's purported financial strain. The company has reportedly fired hundreds of employees. Here are the details.

With no prior indication or opportunity to rectify any perceived issues, Rahul's employment was summarily terminated, leaving him bewildered and scrambling for answers, Money Control reports. The call abruptly ended after the employee was informed about the layoffs, and the person didn't receive any clarity on the matter as his number was blocked by the HR executive. It is worth mentioning that Rahul is not the only one affected by this. Many other employees have received layoff news over a phone call, with people getting no chance to inquire about the same.

The latest move by Byju's is attributed to ongoing financial challenges compounded by legal disputes with foreign investors. Despite reassurances from company spokespeople regarding impending resolutions and investor support for a substantial rights issue, the uncertainty persists, leaving employees in a state of limbo.

"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. As you are also aware, we are going through an extraordinary situation in the company because of the ongoing litigation with four foreign investors, where every employee and the ecosystem is going through tremendous stress, given the present circumstances, a Byju's spokesperson told India Today Tech.

Byju's has initiated layoffs, affecting potentially hundreds of employees, without adhering to standard procedures such as performance improvement plans or notice periods. Sources of Money Control claim that this round of layoffs could see anywhere between 100 to 500 employees being ousted from their roles.

"We regret the unfortunate situation the company has been forced into. Still, it is something that we will put behind us soon with majority investor support for the $200 million rights issue. We request everyone's understanding of the individual and collective stress on the system, which might be prompting some unforeseen situations for the departing employees," Byju's spokesperson said.

As the dust settles on this latest upheaval, questions loom over Byju's management and their handling of the situation. The disregard for employee welfare and the apparent lack of communication raise serious concerns about the company's commitment to its workforce amidst turbulent times.