Published By: Business Desk
Last Updated: March 11, 2024, 15:13 IST
In a significant cost-cutting effort to address the imminent liquidity crisis, embattled ed-tech company Byju’s has given up all offices across India, retaining only its headquarters at IBC, Knowledge Park, Bengaluru.
This comes at a time when the company has been engaged in a dispute with its investors regarding the validity of the funds raised from a recently concluded rights issue offering.
As a result of the decision, the company has now mandated that all employees work from home indefinitely, except for those working out of approximately 300 Byju’s Tuition Centres across the country.
This also comes at a time when the company has held back part of February salaries for about 75 percent of its employees. The company currently has close to 14,000 employees in India. Byju’s, disbursed the payments after delaying it for about days and promised to pay the balance once it is allowed to use the funds from the recently closed rights issue.
According to sources close to the company, the decision to shut down all offices in the country was a part of the Byju’s India CEO Arjun Mohan’s restructuring plan.
“This has been in works for over six months. The company has been shutting down offices across country as soon the lease for each expired,” said the source.
The CapTable was the first to report the development.