Byju's Plans to Cut 1,000 Jobs, Offers 2 Months' Salary as Severance

Edtech giant Byju's, which has been in the legal tussle with its lender, has reportedly laid off around 1,000 employees, primarily targeting senior personnel who have dedicated more than two years to the organization.

The decision to downsize comes amidst allegations of a term loan predicament and mounting tensions with lenders, prompting Byju's to implement cost-cutting measures across various divisions.

Consequently, 1,000 employees will be let go in the latest round of layoffs. Those who have served the company for an extended period will constitute the majority of those affected. With this recent report, the total number of job losses at Byju's reaches an alarming 3,500.

The layoffs were reportedly communicated to employees through individual phone calls and face-to-face meetings held at the company's headquarters on June 16. Startlingly, the affected workers were informed that the same day would be their last at the company without any prior correspondence. Employees had repeatedly questioned HR and their superiors about potential layoffs after reading media reports, only to be assured that no such measures would be taken.

Sources, speaking anonymously, revealed that employees were encouraged to submit voluntary resignations following discussions on the official HR portal. Additionally, reports suggest that employees were required to surrender their official identification cards, and their email accounts were promptly blocked. Some employees were informed about the impending layoffs as early as June 14.

To mitigate the financial impact on the terminated employees, Byju's has committed to providing a severance package equal to two months' salary. According to sources, the company intends to make the full and final payment by September or October, approximately 45 days after the end of July. However, after this deadline, no further severance benefits will be granted to the affected workforce, as confirmed by the HR department.

The layoffs at Byju's signify a challenging period for the ed-tech giant as it grapples with financial concerns and strained relationships with lenders. As the affected employees navigate this abrupt career transition, the wider industry will undoubtedly observe the implications of such a significant downsizing effort on Byju's operations and future growth.

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