Byju's, the edtech giant, has recently asked all its 14,000 employees to work from home in response to the ongoing financial challenges. The company is also vacated all its office spaces, except for its headquarters in Bengaluru, according to report.
According to the NDTV Profit report citing the source, Byju's has closed all its office spaces nationwide, excluding the Bengaluru-based IBC Knowledge Park where more than 1,000 employees are stationed. Over the past few months, the company has been gradually vacating offices as part of a cost-cutting strategy. The move involved not renewing contracts for several office locations across various cities, as reported by NDTV Profit.
Byju's will keep about 300 of its tuition centers operational, according to the report.
The company is making changes these changes as a part to save money. The company's CEO in India, Arjun Mohan, is restructuring things, and one step is giving up offices to cut costs.
Byju's is facing a financial challenge because the money from a rights issue which is around USD 250 to USD 300 million is stuck due to a disagreement with some investors.
Reportedly, despite disbursing some overdue salaries to more than 20,000 employees for February, the company has decided to relinquish office spaces as leases expire, choosing to retain only its headquarters in Bengaluru.
Byju's is currently facing financial difficulties marked by cash-flow problems and a disagreement with creditors regarding a substantial USD 1.2 billion loan. The company, which was once valued at over USD 20 billion, has seen a decline in its worth, estimated to be around 90 percent in the past year.
