Adversitement
Byju's Shifts to Remote Work as Offices Vacated Amid Financial Crisis
Published On : 2024-03-12T12:34:31+0530 [ IST ] |
Author : Mayur_Tembhare
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Amid financial troubles, edtech firm Byju's has made the decision to shift its operations entirely to remote work, instructing its 14,000 employees to work from home. This move comes as the company vacates all its offices across the country, with the exception of its headquarters located in Bengaluru.
Sources revealed to NDTV Profit that Byju's has emptied all office premises except for the IBC Knowledge Park in Bengaluru, where more than 1,000 employees are based. The process of vacating offices has been ongoing for several months as part of the company's cost-cutting measures, with several office contracts not being renewed.
Byju's, once valued at over $20 billion, has seen a significant decline in its valuation, estimated at around 90 percent over the past year. The company is facing cash-flow problems and is currently embroiled in a dispute with creditors over a $1.2 billion loan.
Despite the office closures, around 300 of Byju's tuition centers, physical spaces where students of classes 6-10 study, will continue to function, according to reports.
Byju Raveendran, the CEO of Byju's, has faced challenges in recent months, including the resignation of auditor Deloitte over corporate governance issues and legal disputes with US lenders. Last month, a resolution to remove Raveendran from his role as CEO was passed by major stakeholders, but Byju's rejected the move, stating that the resolution was passed at a meeting attended only by a "small cohort of select shareholders."
Raveendran has lost support from key investors, and the company's funding remains blocked, leading to difficulties in processing salaries for employees. Despite these challenges, Byju's continues to operate, albeit with significant adjustments to its operations and workforce structure.
Source : NDTV News
Tags : CEO , Byju's , edtech , corporate governance , work from home , valuation , financial crisis , creditors. , office closures ,
Summary : Edtech giant Byju's has instructed its 14,000 employees to work from home as it vacates all its offices across the country, except for its headquarters in Bengaluru. The move comes as Byju's grapples with financial difficulties, including cash-flow problems and a dispute with creditors over a $1.2 billion loan. The company's valuation has reportedly plummeted by 90 percent over the past year, and it has faced challenges such as the removal of its CEO Byju Raveendran and issues with corporate governance. Byju's tuition centers, however, will continue to operate despite the office closures.
Adversitement