New Delhi: Byju’s, Edtech firm vacated all its offices except the headquarters in Bengaluru amid the ongoing crisis and asked its 14,000 employees to work from home.
All other office premises across the country except for IBC Knowledge Park in Bengaluru, where over 1,000 employees work have been vacated by the edtech goliath, sources said the NDTV.
The process has been going on for the past few months as the company did not renew several of its contracts for offices across cities as a way to cut costs.
However, around 300 of Byju’s tuition centres, which are physical spaces where students of classes 6-10 study, will continue functioning, the report said.
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Byju’s issue
The issue is because the Byju’s has been struggling with cash-flow problems and is also embroiled in a dispute with creditors over a $1.2 billion loan. The firm has seen its valuation crash by an estimated 90 percent over the past year, which was once valued at more than $20 billion.
Byju’s major stakeholders last month voted to remove Byju Raveendran from his role as chief executive officer (CEO).
The move was rejected by Byju’s, which said the resolution was passed at a meeting attended only by a “small cohort of select shareholders”. “Byju’s firmly declares that the resolutions passed during the recently concluded extraordinary general meeting… are invalid and ineffective,” the company said in a statement.
Including the resignation of auditor Deloitte over corporate governance issues and the legal fight with the US lenders, Byju Raveendran has lost the support of key investors after a series of crises. Mr Raveendran last month had written to the staff, saying that the firm was unable to process the February salaries as its funding remained blocked by the investors.
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