New Delhi, March 21 (IANS): Embattled edtech company Byju’s is reportedly planning to shut down about 200 offline tuition centres out of its 300 centres across the country as part of its latest cost-cutting move.
The company intends to leave the centres starting next month. This comes after the company closed 50 centres in February.
The CapTable was the first to report the development.
Byju’s Tuition Centres, or BTCs, were seen as the primary growth engine for the company, which had been expanding the vertical until early 2023.
When reached, the edtech company did not immediately comment.
Last week, Byju’s mandated all its employees to work from home as it gives up office spaces across the country amid several cash crunch. It barred those working at its 300 offline tuition centres.
People close to the development told IANS, that the company has given up office spaces as the leases expired, keeping only its Bengaluru-based headquarters.
The move to give up offices was part of Byju's India CEO Arjun Mohan's restructuring exercise to save cash as proceeds from the rights issue (around $250-$300 million) remain stuck amid its tussle with select investors.
Meanwhile, Byju's has disbursed a portion of the pending salaries for over 20,000 employees for the month of February.
"We processed part salaries for everyone for February, late night on Friday to the extent of capital we could get outside the rights issue. The company will pay the balance once the rights issue funds are available, which we expect shortly," the company said in a letter to employees.
--IANS
