Byju’s Shifts to Remote Work Amid Financial Turmoil, Maintains Tuition Centers

In a significant operational shift, Byju’s, the leading edtech company, has transitioned approximately 14,000 employees to remote work, maintaining operations only at its headquarters in Bengaluru’s IBC Knowledge Park, where over 1,000 employees are based. This move comes as the firm vacates its office spaces across India, an effort that has been ongoing for several months aimed at reducing operational costs. Despite the office closures, around 300 of Byju’s tuition centers, catering to students from classes 6-10, will remain operational, highlighting the company’s commitment to continue its educational services amidst financial challenges.

The decision to vacate offices aligns with Byju’s broader struggle to manage its finances, including a cash-flow crisis and a contentious dispute with creditors over a $1.2 billion loan. The once over $20 billion valued company has seen a drastic reduction in its valuation by an estimated 90% over the last year. This financial downturn has sparked major governance decisions, including a vote by major stakeholders to remove Byju Raveendran from his CEO position, a proposal that has been contested by the company.

Amidst these challenges, Byju’s has faced additional setbacks, including the resignation of its auditor, Deloitte, over concerns related to corporate governance, and legal disputes with U.S. lenders. In a communication to the staff, Raveendran highlighted the company’s predicament, noting difficulties in processing February salaries due to funding being blocked by investors. The series of crises underscores the significant hurdles Byju’s faces as it navigates through its operational and financial difficulties.

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