Byju’s shuts all offices except Bengaluru HQ; shifts to remote working

Edtech giant Byju’s has adopted a remote work model indefinitely, directing all employees to work from home except those stationed at approximately 300 Byju’s tuition centers. This move is part of Arjun Mohan, Byju’s India CEO, restructuring plan. The company has been gradually shutting down offices across the country as their leases expire, a process that has been in the works for over six months.

Byju’s has been facing financial challenges, including cash-flow problems and a dispute with creditors over a $1.2 billion loan. The edtech firm, once valued at over $20 billion, has seen a significant decline in its valuation, estimated to be around 90% over the past year. The company has also faced crises such as the resignation of auditor Deloitte over corporate governance issues and a legal battle with US lenders.

In a bid to address financial constraints, Byju’s recently disbursed partial salaries for February to employees. The company mentioned that it had processed part of the salaries to the extent of available capital outside the rights issue and expected the salaries to be reflected in employees’ accounts on March 11. Byju’s has assured that alternate fund arrangements have been made to avoid disruptions in employees’ daily lives.

Byju’s major stakeholders had voted last month to remove founder Byju Raveendran from his role as CEO, citing various crises. However, Byju’s rejected the move, claiming that the resolutions passed during the meeting were invalid and ineffective, as they were adopted by a small cohort of select shareholders. The edtech company is navigating a challenging period, and its shift to remote work reflects broader adjustments in response to financial and operational challenges.