Byju’s Founder Byju Ravindran (LinkedIn)
The problems of Byju’s, an edtech company providing online education, are not showing signs of diminishing. To overcome the cash crunch, the company first raised money through rights issue, but investors banned its use. Now, to save cash, the company has closed all its regional offices spread across the country and has also given work from home to 15,000 employees.
The reason for the company doing this is to raise money for the salaries of the employees. Byju’s has closed all its regional offices except its IBC headquarters in Knowledge Park, Bengaluru.
Regional offices were opened in these cities
Byju’s has more than 20 regional offices, which were opened in Delhi, Gurugram, Mumbai, Pune, Hyderabad, Chennai and other cities. Now the company has closed them. The company says that it had started the process of restructuring its office space a few months ago under the leadership of CEO Arjun Mohan. Now the final approval has been given to the decision to close all the regional offices to cut costs.
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About 15,000 employees used to work in these regional offices of the company, who will now work from home indefinitely. However, the company’s more than 300 tuition centers spread across the country will still continue to function and its employees will continue to go to office.
How big is Byjus’s crisis?
Byju’s is facing severe shortage of cash. Company founder Ravindran Byju and his family had to mortgage their house so that they could pay the salaries of the company’s employees. Not only this, some investors of the company have even called for an EGM to remove Byju and his family from the company’s board and have passed a resolution to oust them. Meanwhile, Byju Raveendran has made it clear that he is the founder and CEO of the company. There is also a case regarding Byju’s in NCLT and Karnataka High Court, which is yet to be heard this month.