Home » India News » Byju’s axes employee notice period as challenges escalate

Byju’s axes employee notice period as challenges escalate

By Nithya Bose in India News, posted December 5, 2023

Byju’s has reduced the notice period for staff, a move aligned with cost-cutting measures initiated by CEO Arjun Mohan in September.

The edtech giant is grappling with mounting challenges as it faces financial strain and internal restructuring.

The new notice periods are 15 days for Level 1 to 3 roles and 30 days for higher levels (Level 4 and above).

This follows a prior restructuring that led to around 4,500 job cuts within the company.

The company employs 13,000 to 14,000 people under the 'Think & Learn.'

Recent reports highlighted delays in November salary disbursements for approximately 1,000 employees due to a technical glitch.

Byju’s eventually cleared the pending salaries on Monday, December 4.

Facing financial challenges, Byju’s is considering selling Epic, a deal expected to yield around $400 million, with three bids already in consideration.

The funds allocated for operations could range between $80 to 100 million, while the remainder might be directed to term loan B (TLB) lenders.

Discussions with TLB creditors regarding the Epic sale proceeds are underway as the company seeks additional financing.

Byju’s expects an estimated $300 to 320 million to be earmarked for them.

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Simultaneously, reports suggest that Joffre, a tech-focused buyout firm, is leading the bidding for the Epic acquisition.

Byju’s is urgently implementing measures to navigate its financial challenges, coinciding with its upcoming annual general meeting scheduled for December 20.

Investor demands for founder Byju Raveendran to step back from daily operations were reported on November 29.

Sources noted the urgency of swiftly finalising the Epic sale, aiming to conclude the deal before global investors embark on holiday breaks leading up to Christmas and the New Year.

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