Byju's employees meet Kerala minister after 170 staff are 'asked to resign'

Representative image. (Source: ShutterStock)

A group of employees from Byju's, one of India's most-valued startups, on October 25  met Kerala labour minister V Sivankutty, alleging that the edtech giant was forcing more than 170 staff to resign as it looks to discontinue operations in Thiruvananthapuram.

Byju's, which has an office in the Carnival building of Technopark, is planning to stop operations from the state capital, said a LinkedIn post by TechnoparkToday, a community digital media platform for IT professionals.

Byju's did not immediately respond to Moneycontrol’s queries.

Co-founder and CEO Byju Raveendran hails from the small coastal village of Azhikode in Kerala.

More than 170 employees are working at the company's Technopark office. The management was forcing employees to resign, the post said. Employees approached Prathidhwani, a welfare organisation of techies, seeking help. Moneycontrol verified the claim with Prathidhwani.

Prathidhwani requested Sivankutty to help employees reach an "amicable' and dignified" settlement with the organisation. The minister has agreed to intervene and help employees, Prathidhwani members said.

"Employees were given two options. They were told to resign and if they don't, they were told their contracts would be terminated," Vineeth Chandran, Secretary, Prathidhwani, who was present at the meeting on October 25, told Moneycontrol.

"Employees were told if their contracts are terminated, their future employment prospects would take a hit as it doesn't look good on one's Resume. So some resigned, some still haven't."

No one from Byju's senior management attended the meeting and the company sent an email to the minister, requesting another meeting next week as no one was available in town because of the holidays.

"So there will be a meeting next Monday (October 31) and a solution is likely possible then," Chandran added.

He said the affected employees and Prathidhwani requested the minister to advise Byju's to not to force resignations. The employees want their October salaries to be paid on November 1.

They also want a one-time settlement of salary for three months (from November 2022 to January 31, 2023), encashment of earned leave and full settlement of variable pay, Prathidhwani members said.

The other demands would be discussed later as no one from Byju's management attended the meeting Chandran said.

The company's reason to shut operations in Thiruvananthapuram could not be ascertained immediately.

The accusation of forced resignations comes a couple of weeks after the startup said it would lay off 5 percent of its workforce, or close to 2,500 employees, to cut costs as it aims to achieve company-level profitability by March 2023.

It remains unclear whether the 170 employees are a part of the layoffs announced on October 12.

Byju's losses widened to over Rs 4,500 crore in FY21, making it the biggest loss-making startup in the country.

It also reported a surprise fall in its FY21 revenue, though marginal but in a year that gave edtech companies a shot in the arm as demand for online learning surged due to stay-at-home Covid-19 restrictions.

Worries are mounting for rising for the world's most-valued edtech startup, as demand and funds for online learning, the biggest beneficiaries of the coronavirus outbreak, dry up as the pandemic ebbs.

Last week, the company raised its first-ever flat round of $250 million from existing investors at a valuation of $22 billion, in what was an indication of the company's valuation curve flattening.