Byju's Layoffs: Edtech Cuts Jobs Via Phone Calls Amid Financial Strain, Says Report

This is not just Rahul's experience. The troubled edtech giant has reportedly begun layoffs via phone calls, dismissing employees without subjecting them to a PIP or providing a notice period

The current round of layoffs may affect anywhere from 100 to 500 employees, as per the report

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The troubled edtech firm Byju’s has reportedly started laying off its employees amid the legal crisis the firm is facing. Rahul, an employee at Byju's, found himself in a situation where he needed to attend to a close family member facing an illness. Consequently, he made the decision to take a leave of absence in the middle of March, requiring him to leave the city for a few days where he was stationed, according to a report by Moneycontrol.

On March 31, Rahul received a surprising phone call from the company's human resources department. During the conversation, the HR executive conveyed the company's decision to terminate his employment. Initiating the exit procedures promptly, the HR representative notified Rahul that his final day of employment was to be that very day, as per the report.

Upon questioning the cause behind his termination, Rahul was informed by the HR department that the company's bleak financial state prompted the decision, with top management furnishing a roster of employees for dismissal. Taken aback by this revelation, Rahul started recording the discussion for substantiation. However, the HR voiced objection to his action without prior consent. The conversation was abruptly terminated, followed by Rahul's realisation that the HR executive had blocked his contact, states the report.

This is not just Rahul's experience. The troubled edtech giant has reportedly begun layoffs via phone calls, dismissing employees without subjecting them to a performance improvement plan (PIP) or providing a notice period, reported Moneycontrol, citing sources.

The current round of layoffs may affect anywhere from 100 to 500 employees, as per the report. Over the past two years, Byju's has reportedly terminated a minimum of 10,000 employees amid financial constraints and legal disputes with investors and other stakeholders. Records indicate that Byju's India entity had approximately 14,000 employees on its payroll, based on the most recent available data.

A spokesperson from Byju's confirmed the development to Moneycontrol and said, "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."

"We are going through an extraordinary situation in the company because of the ongoing litigation, where every employee and the ecosystem itself is going through tremendous stress given the present circumstances," the spokesperson added.