Last year, Byju’s laid off about 600 at its group companies – WhiteHat Jr and Toppr. It said this was a move to drive cost efficiency
Bengaluru, NFAPost: Byju’s has handed the pink slip to 100 employees in a fresh round of layoffs, post a performance review. However, according to a media report, the edtech company has sacked about 400 people, Business Standard reported.
“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,” said the Byju’s spokesperson.
He added, “Please note, this measure is firmly rooted in performance-based considerations and is not in any way a cost-cutting endeavour.”
Byju’s also said that there are no fresh layoffs in the post-sale division. “In fact, during the past two months, as part of our commitment to augment this division, Byju’s has recruited 200 new professionals,” said the spokesperson.
Earlier this year, Byju’s handed the pink slip to 900-1,000 employees in a fresh round of layoffs, according to media reports.
However, sources in the company said the move was part of the “optimisation” strategy that the edtech giant had announced last year. This included sacking 2,500 workers.
Last year, Byju’s laid off about 600 at its group companies — WhiteHat Jr and Toppr. It said this was a move to drive cost efficiency.
The new development comes at a time when Byju’s appointed veteran Infosys HR leader Richard Lobo as exclusive advisor to help transform its HR function. This strategic move underscores Byju’s commitment to fortify its employee-centric culture.
Lobo joins Byju’s after a 23-year stint at Infosys, where he held various leadership roles. Most recently, he served as its executive vice-president and head of human resource.
Lobo’s appointment comes at a time when Byju’s, once the most-valuable edtech company, has been in the news for the wrong reasons. These include sacking employees, alleged harsh and “abusive” work culture. These also include due diligence and corporate governance issues, the inability to file financials, legal battles with lenders, challenges in raising fresh capital, and a markdown in its valuation by investors.
The Institute of Chartered Accountants of India (ICAI) recently scrutinised the financial disclosures of the edtech company due to a 22-month delay in the submission of its financial reports.
The ministry of corporate affairs has also initiated an inquiry against the company. This scrutiny may also bring the role of the auditor under question as Byju’s is yet to file its results for 2021-22. Even the 2020-21 (FY21) results were delayed.
According to the latest available financial report, Byju’s booked losses of Rs 4,588 crore in FY21. The losses were 19 times more than the preceding year. The firm earned Rs 2,428-crore revenue in FY21.
On July 22, Byju’s auditor Deloitte Haskins & Sells resigned from its role as the company was delaying filing financial results.
Following the auditor’s resignation, the firm’s top-three investors — Prosus, Peak XV Partners, and Chang Zuckerberg Initiative representatives — also resigned.
After these resignations, Byju’s chief executive officer (CEO) Byju Raveendran addressed shareholders and employees on the issue.
