The educational technology company Byju’s has chosen to make a move that would see all their 14000 staff members work from home, leaving Thinagade, the company’s headquarters in Bangalore, operational. Their gesture is not a surprise as the college struggles with the ongoing problems during this time. Per the news agencies, withdrawal from the office lease in all cities of the country, but the guarding and presence of more than a thousand employees on a single premises, IBC Knowledge Park of Bangalore, is the only ongoing operation.
NDTV Profit reports that Byju’s, one of the most popular ed-tech platforms in India, has been cutting office rentals in various cities for a few months as part of its cost-saving process. However, the company will not be closing down the 300 Byju’s tuition centres, that is, the physical spaces where students from classes 6 to 10 attend classes, in the near future.
Byju faces an income shortfall, and the company is now on the brink of bankruptcy due to a legal issue with creditors over a $1.2 billion unpaid debt. The firm’s valuation has also plunged enormously. The decline is around ninety per cent just within a year compared to the prior value exceeding $20 billion.
It is with great recent development that Byju’s top owners voted to remove Mr. Byju Raveendran from being the Chief Executive Officer (CEO) and the right to appoint someone to that position. However, Byju repressed the resolution, stating that only the shareholders who attended a meeting participated. The company released a statement a day before to render the resolutions nonoperational and inefficient.
Byju Raveendran had to endure a string of crises, including Deloitte’s ex-auditor’s resignation, for reasons related to corporate governance and the legal battle between US creditors, which sent away his key investors.
“We regret to inform you that we are unable to pay your February salaries as our funds were blocked,”
Raveendran wrote in an official letter to the firm staff.
