BYJU’S acknowledges salary processing delay amid challenges
Last month, BYJU’S’ former employees had alleged that the company had failed to meet the deadline for full and final settlement of laid-off workers.
Edtech firm has acknowledged a delay in the processing of salary for some of its employees, amidst a series of challenges faced by the company, including a liquidity crunch.
“We have noticed a delay in processing salary for some limited employees (<5%) due to an unexpected technical glitch. The issue is being rectified over the weekend and payment will be processed by Monday,” a BYJU’S spokesperson said in response to YourStory’s queries.
The delay in November salaries by BYJU’S has affected approximately 1,000 employees at the edtech company, The Economic Times reported.
Last month, BYJU’S’ former employees had alleged that the company had failed to meet the deadline for full and final settlement of laid-off workers.
These developments have come during a period when the edtech company is contending with various hurdles, including financial constraints.
In November, Ranjan Pai–the Chairman of Manipal Education and Medical Group—bought Rs 1,400 crore debt in BYJU’S test preparation unit Aakash Educational Services Limited to help the troubled edtech firm pay off a loan taken from US-based lender Davidson Kempner Capital Management.
Pai has reportedly provided BYJU’S with approximately Rs 250-270 crore in fresh funding a few weeks ago.
Meanwhile, BYJU’S is considering selling two of its holdings, Epic and Great Learning, to generate a minimum of $800 million to settle a $1.2-billion term loan B owed to its lenders.
In recent months, numerous top-level executives have departed from the company. Additionally, BYJU’S has been reducing its workforce on a global and domestic scale. Over the past year, the edtech firm has implemented several rounds of layoffs as part of its cost-cutting measures.
Last month, BYJU’S released specific financial figures related to its core business as part of the audited financial results for the fiscal year 2021-22 (FY22).
In FY22, BYJU’S core business earned a total income of Rs 3,569 crore, up from Rs 1,552 crore in the previous year, and the EBITDA loss decreased to Rs 2,253 crore from Rs 2,406 crore in the previous financial year, according to a company statement.
BYJU’S, which rapidly grew through strategic acquisitions, has encountered significant challenges post the pandemic-led edtech boom. It has also come under the scanner of the Enforcement Directorate.
Edited by Megha Reddy