Byju’s, a major player in the Ed-tech industry, is currently facing challenging times.
Despite significant retrenchment efforts, the company continues to grapple with its problems.
Recent reports reveal that Byju’s has taken the decision to vacate its largest office in Bengaluru, adding to its woes.
The situation has worsened as the company has allegedly failed to pay Provident Fund (PF) dues to a considerable number of employees in June, and this is not the first time such non-payment has occurred.
Vacation of a Prominent Office
According to a report by Money Control, Byju’s has instructed employees at its Kalyani Tech Park office in Bengaluru to either work from home or relocate to other centers starting from July 23.
The office being vacated covers a vast area of 5.58 lakh square feet.
Moreover, two floors of the nine-story office at Prestige Tech Park have also been vacated by the company.
Company’s Response
Responding to the developments, a spokesperson from Byju’s stated that the company currently has a total office space of 30 lakh square feet spread across the country.
Decisions regarding office space allocation are made based on business priorities and working policies.
Unpaid PF Dues
Money Control’s report indicates that in June, Byju’s only paid PF dues to 738 employees, a stark contrast to the 25,000 employees who received their payments the previous month.
The company faced scrutiny last month when it paid PF to 24,818 employees after a delay. Additionally, the PF dues for April and May remain unpaid.
In the months of January, February, and March, PF payments were only made to approximately 10,000 to 13,000 employees.
Retrenchment Measures
To mitigate its expenses, Byju’s has resorted to retrenchment as a cost-cutting measure.
Reports from Layoff FYI, an organization that monitors layoffs, reveal that the company has laid off around 5,000 employees in the past nine months.
Byju’s, once a trailblazer in the Ed-tech sector, now faces significant challenges.
The company’s actions and decisions are being closely monitored as it navigates through these troubled waters, impacting both employees and its overall business operations.
