Byju’s lets go of employees in mentoring, product expert division after performance review

The final settlement of dues is expected within 90 days of the layoffs.

Edtech firm Byju's has undertaken another round of layoffs as part of a performance review, as it navigates a challenging operating environment.

In this round, over 400 employees from the mentoring and product expert division, who were placed under a performance review in July, were asked to resign on August 17, multiple employees confirmed to Moneycontrol.

While Byju's confirmed that it had let go of more employees as part of a periodic performance review, the company disputed the number, stating that only 100 employees were affected.

“As part of a periodical performance review, 100 individuals who did not meet expectations after a performance improvement plan, were let go with proper procedures. Please note, this measure is firmly rooted in performance-based considerations and is not in any way a cost-cutting endeavour,” a Byju’s spokesperson said in response to queries.

However, multiple current and former employees insisted on the number 400 in their conversations with Moneycontrol.

“The HR gave a call and informed employees that their email addresses will be deactivated within the next two hours and asked them to download pay slips and other important documents. They were immediately asked to initiate exit on the call with the HR on the line,” said a source in the know, requesting anonymity.

According to sources, employees were asked to resign voluntarily and were offered the salary for August and September as their final settlement. Staff members who refused to resign were immediately terminated and were promised their salary payment up to August 17, they added.

“The HR told us that if you choose to be terminated, there will be other consequences. If other companies call us, we are forced to say that the layoff was based on performance,” another employee, who was let go in the round told Moneycontrol.

The final settlement of dues is expected within 90 days of the layoffs.

Since 2022, the edtech major has laid off at least 5,000 employees. It has also delayed appraisals, provident fund payments, and withheld performance-linked pay from employees.

Byju’s recently onboarded Infosys veteran Richard Lobo to lead the HR function. To be sure, he will remain with Infosys until the end of August and will assume his role at Byju’s only after that period.

Apart from multiple rounds of layoffs, Byju’s has also sought to boost efficiency and pare costs by giving up its biggest office space in Bengaluru recently.

Moneycontrol recently reported that Byju's' founders, top executives, and advisory council held a call with over 110 investor representatives, where they updated them on the progress of its Term Loan B negotiations and audited results, among other issues. It assured them that this would be a defining quarter for the company, as it gets things in order after a challenging phase.

Byju's move to update investors comes at a time when India's most valued edtech company has been battling multiple fires, from a missed deadline to rework loan terms, to delays in filing its audited numbers, and a protracted fundraising process.