New Delhi: Embattled edtech company Byju’s has started to lay off hundreds of employees amid a cash crunch. The company said on Tuesday that they are in the final stages of a business restructuring exercise.
According to reports, the company is letting the workers go without serving a notice period.
In a statement to IANS, the company, which is yet to pay salaries to its employees for the month of March, said: “They are in the final stages of a business restructuring exercise announced in October 2023 to simplify operating structures, reduce the cost base, and better cash flow management.”
The edtech startup has laid off thousands of employees in the last two years as it struggles with limited funding and legal battles with investors and other stakeholders.
“We are going through an extraordinary situation in the company because of the ongoing litigation with four foreign investors, where every employee and the ecosystem is going through tremendous stress, given the present circumstances,” the spokesperson added.
Meanwhile, Byju’s delayed salaries for thousands of its employees for the second successive month, saying that a few “misguided foreign investors” obtained an interim order in late February which restricted usage of the funds raised through the rights issue.
In an email to the employees, the company’s management said, “We regret to inform you that there will again be a delay in the disbursement of salaries.”
–IANS