Byju’s has chosen to postpone the completion of severance packages for employees who were laid off between September and November. This decision was motivated by the company’s ongoing financial difficulties, which are the result of prior commitments made to lenders and an extended delay in securing critical funds through a fundraising initiative that has been pending for a long time.
The postponement of these severance packages highlights the financial complexities and constraints that Byju’s is currently dealing with. The company is caught between its obligations to lenders, who expect timely repayments, and the need to raise additional funds through fundraising efforts.
Byju’s underwent a significant workforce reduction in June, affecting approximately 1,000 employees across various departments such as mentoring, logistics, training, sales, post-sales, and finance. This decision was justified by the company as a strategic move aimed at achieving profitability.
Employees were assured during the layoffs that their final settlements would include both June and July salaries, as well as additional incentives, with the payout scheduled for September 15th.
However, on September 14, 2023, the company informed the affected employees via email of a delay in processing the sum owed to them. Employees can now expect to receive their outstanding payments by the 17th of November, 2023, according to the new timeline stated in the email.
The email stated that the entire and final settlement would be disbursed on November 17, 2023. The company also apologised for any inconvenience caused by the delay.