Byjus gives up office spaces across country to cut costs, imposes work from home for staff

HYDERABAD: The beleaguered edtech major Byjus has given up offices across the country except for its headquarters in the Knowledge Park located in Bengaluru under cost-cutting measures. It has asked its staff to work from home except those in more than 300 tuition centres operated by the Byjus.

As of now Byjus Raveendran’s edtech company paid part of the pending salaries to its staff with a promise to pay the remaining part very soon. The company sunk into a deep debt crisis following a legal battle between Raveendran and investors. Raveendran raised $ 200 million through a rights issue. But was unable to use the funds collected through the issue. Investors filed an oppression and mismanagement suit with the National Company Law Tribunal (NCLT).

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However, the company said that the latest move was a part of the austerity measures initiated under a restructuring plan. Market observers were told by the company that it had decided not to renew the contract of all rented properties whose contract period had ended and were marked for closure.

The Edtech company which had currently employed over 14,000 in India said that it had made alternative arrangements for the payment of salaries. At the same time, the $200 million it raised could not be touched till the legal issues were sorted out