Financially-struggling
edtech company
Byju’s has reportedly asked its employees to
work from home
as it vacated office spaces across the country. Reports said that the company is relinquishing all offices barring the 300-odd offline tuition centres.
The company has given up office spaces as the leases expired, keeping only its Bengaluru-based headquarters.
The move is seen as
Byju's
India CEO Arjun Mohan's restructuring plan to save cash as proceeds from the rights issue (around $250-$300 million) remain stuck amid its tussle with select investors, a report by news agency IANS said.
Byju’s disburses portion of Feb salaries for some employees
The move comes a day after reports said that Byju’s disbursed a portion of the pending salaries for over 20,000 employees for February. The edtech company has promised to pay the remaining salaries once it is allowed to use the funds from the recently closed rights issue.
“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 its latest letter to employees.
“As you know, a group of investors has blocked the funds raised through the rights issue, rendering them temporarily unavailable for our business purposes. This situation has created an immediate financial constraint for the company,” it added.
The company has fully paid the salaries of lower base employees but the mid-to-senior workers have been paid in part and assured employees that they are working to resolve this matter to restore normalcy.
“In the interim, we have made alternate funding arrangements to ensure your daily lives are not disrupted,” the company said.
In the letter, the company mentioned that the salaries are expected to be reflected in employee accounts on March 11.
(With agency inputs)
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