Rahul, an employee of edtech company Byju's, had to take care of a close family member suffering an illness. As this required him to leave the city where he was working, he decided to take a leave of absence in mid-March.
However, on March 31, he received a surprising call from the company's human resource department. During the call, the HR executive informed him that the company had decided to terminate his employment. The HR went on to initiate the exit process immediately and informed him that his last working day was that very day.
When Rahul inquired about the reason for his termination, the HR cited the company's poor financial condition, stating that a list of employees for termination had been shared by top management.
Shocked by the news, as Rahul began recording the conversation for evidence, the HR argued as to why he is doing so without permission. The call was abruptly terminated. Subsequently, Rahul discovered that his number had been blocked by the HR executive.
Rahul is not alone. Embattled edtech company Byju's has initiated layoffs on phone calls, letting go employees without putting them on a performance improvement plan (PIP) or having them serve a notice period, sources told Moneycontrol.
The number of layoffs in this round, according to sources, could range between 100 and 500 employees. Byju's has sacked at least over 10,000 employees in the last two years as the company grapples with dwindling funds and legal showdowns with investors and other stakeholders. According to the last available data, nearly 14,000 employees were on the payroll of Byju's India entity.
Byju's spokesperson confirmed the development in response to Moneycontrol's queries 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.
In the current wave of layoffs, phone calls are followed by an email to employees. “Hi Rahul, this is to confirm that your last working day with Think and Learn Pvt Ltd will be March 31, 2024. Your full and final settlement will be done as per the exit policy. Please hand over all the assets and proprietary information of the Company that are in your possession to enable processing your full and final settlement. In case of any queries on exit formalities, please contact separations@byjus.com,” said the email that came from Byju’s HR Compliance department.
Moneycontrol has reviewed several copies of these emails sent to employees. Sources confirmed that the new round of layoffs has primarily impacted the company's sales function.
An employee recently terminated, Neha, told Moneycontrol that she and two other sales executives working at one of the Byju's Tuition Centres in Maharashtra have been dismissed.
Deepak, another employee, found himself in a similar situation when he received a call from the HR. Suspecting that the call was regarding his termination, he began recording the conversation. However, the HR objected to being recorded without consent and abruptly ended the call without informing him about his termination. The HR department has been dodging his calls ever since.
After the call, Deepak received the same email as Rahul. “The email or the call offered no clarity on when I could expect my pending dues or what was the reason I was being let go in the first place without a PIP,” Deepak told Moneycontrol.
The situation was equally confusing for Aditya, a new sales hire at Byju's. He discovered an email stating it was his last working day, with no prior contact from his manager or HR. Shortly after, his company email was deactivated.
Other employees Moneycontrol spoke to informed that the layoffs were based on a list that circulated from the top executives, without specifics regarding the criteria for these decisions. While one former employee speculated that the layoffs were tied to high salary packages, another suggested they may have been based on weekly sales targets.
Byju’s employees bear the brunt
The once-leading edtech company is dealing with a massive cash crunch. Byju's has conducted several rounds of layoffs since the beginning of 2022 as the company grapples with slowing demand and a limited financial runway.
The new round of layoffs coincides with Byju's holding off staff salaries for March as they await approval to use funds from a recent rights issue.
The company had also previously withheld February salaries, eventually paying a portion in mid-March. Byju's has yet to pay the remaining February salaries to its staff, as reported earlier by Moneycontrol.
During the current layoffs, Byju's HR verbally informed some terminated employees that pending salaries would be credited by April 5, with full and final settlements within 90 days. However, this verbal assurance offers little comfort considering full and final settlements for employees laid off as early as June 2023 remain outstanding.
Byju’s has run into a series of troubles with its stakeholders including its board, auditors, investors, employees and government institutions like Employees' Provident Fund Organisation, Board of Control for Cricket in India and Enforcement Directorate, among others.
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