Bengaluru: Edtech firm BYJU’s has reportedly removed around 400 staff from mentoring and product expert division in a fresh round of layoffs. The firm officials, however, said that only non-performers were asked to go after thorough review of their performance.
The employees placed under performance review last month were reportedly asked to resign on August 17. The edtech startup however disputes the number of affected workers and claimed that the latest lay off affected barely 100 staffers. “It was not any cost-cutting measure,” said a BYJU’s spokesperson.
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He further said that the employees were asked to go with proper procedures upon failing to “meet expectations after a performance improvement plan”. “The HR gave a call and informed employees that their email addresses will be deactivated within the next two hours and asked them to download pay slips and other important documents,” source added
Earlier, more than half of BYJU’s tuition centre customers had sought refund in past two years. The development came mere days after BYJU’s announced the appointment of former Infosys executive Richard Lobo to drive the company’s human resource functions.
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Once the world’s most valuable edtech firm, BYJU’s has faced a series of crises in recent months as its auditors quit, anti-money laundering officials searched its offices, and several directors from its board resigned. The beleaguered firm also missed yet another target date set by its creditors to amend terms of a $1.2 billion debt earlier this month. It is also facing a creditors’ lawsuit against as part of the dispute.
Lawyers appearing for the Bengaluru-based company meanwhile told an US court last week that lenders had created bogus default claims tied to $1.2 billion in loans as part of a scheme to gain control of BYJU’s. The fight has also prompted some investors write down their stakes in the education-technology provider.
