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Edtech giant Byju’s has made the decision to shift its workforce to remote work, vacating all its office spaces across the country except for its headquarters in Bengaluru. With approximately 14,000 employees affected by this move, the company aims to navigate through its ongoing financial crisis.
According to sources reported by NDTV Profit, Byju’s has initiated the process of vacating office premises over the past few months, as part of cost-cutting measures. While the headquarters at IBC Knowledge Park in Bengaluru remains operational with over 1,000 employees, all other office locations have been closed down.
Although the closure of office spaces has been a strategic move to reduce costs, Byju’s will continue to operate around 300 tuition centers, serving students from classes 6 to 10. These physical spaces remain functional amidst the transition to remote work.
Byju’s has been facing challenges in managing its cash flow and is entangled in a dispute with creditors over a substantial $1.2 billion loan. The company, once valued at over $20 billion, has witnessed a drastic decline in its valuation by an estimated 90 percent over the past year.
Recent developments have further intensified the company’s struggles, as major stakeholders voted to remove Byju Raveendran from his position as CEO. However, Byju’s has contested this decision, labeling it as invalid due to the exclusion of key shareholders from the voting process.
Byju Raveendran’s leadership has come under scrutiny following various crises, including the resignation of auditor Deloitte over corporate governance concerns and legal disputes with US lenders. In a communication to staff, Raveendran acknowledged the company’s inability to process February salaries due to funding issues stemming from investor restrictions.
As Byju’s navigates through these challenges, its transition to remote work reflects a strategic response to streamline operations amidst financial uncertainties.
Sources By Agencies
