Byju's Shifts Gear Employees Working from Home as Offices Vacated Amid Financial Challenges

Amidst a growing financial crisis, edtech giant Byju's has initiated a significant operational shift, instructing all employees to work remotely and vacating all office spaces, excluding its Bengaluru headquarters located at IBC, Knowledge Park.

The decision, aimed at tackling an impending liquidity crisis, is part of Byju's India CEO Arjun Mohan's restructuring strategy. While employees at the Bengaluru headquarters and 300 Byju's tuition centers continue to work from offices, this move reflects a broader effort to address the financial challenges looming over the embattled edtech company.

Byju's has been grappling with a legal tussle with its investors regarding the legitimacy of funds raised from a recently completed rights issue offering. The company has been navigating a turbulent period, marked by layoffs affecting thousands of employees over the past year. Furthermore, the failure to meet the full salary payments for February has added to the mounting challenges.

Facing cash-flow issues and a dispute with creditors over a $1.2 billion loan, Byju's, once valued at over $20 billion, has witnessed a substantial decline in its valuation, estimated at around 90 percent over the past year.

The company's troubles extend to a leadership shakeup, with major stakeholders recently voting to remove Byju Raveendran from his position as CEO, stripping him of his authority. Raveendran contests this decision, citing concerns about the resolution's validity due to a meeting attended by only a "small cohort of select shareholders."

Byju Raveendran, the founder and former CEO, has encountered a loss of support from key investors following a series of crises, including the resignation of auditor Deloitte over corporate governance concerns and a legal dispute with lenders in the United States.

In a communication to the staff, Raveendran acknowledged the firm's financial struggles, attributing the inability to process February salaries to funding being blocked by investors. As Byju's navigates through this challenging period, the remote work directive and office closures underscore the depth of the company's efforts to address its financial woes and regain stability.