Following a series of substantial layoffs over the past few months, Indian ed-tech firm Byju's has taken the decision to vacate one of its largest office spaces in Bengaluru.
According to a report by Moneycontrol, the company is giving up the 5.58 lakh square feet property in Kalyani Tech Park as part of its cost-saving and liquidity-enhancing measures due to delayed funding.
Employees have been directed to work from other facilities or from their homes, starting from July 23. Interestingly, this report surfaces just days after a video emerged online showing a Byju's employee confronting seniors about delayed incentives.
According to the report from the mentioned sources, Byju's has surrendered two of the nine floors it occupied in Prestige Tech Park. In an effort to accommodate some of the workers previously based at Kalyani Tech Park in the Brookfield area, they may now be relocated to work from Prestige Tech Park or the company's main office on Bannerghatta Main Road.
When asked about these developments, a spokesperson responded to Moneycontrol, explaining that Byju's currently rents more than 3 million square feet of office spaces nationwide to cater to its needs.
The adjustments in office space, whether expanding or reducing, are driven by changes in working policies and business priorities, which occur regularly and are aimed at enhancing operational efficiencies.
Security personnel at the Kalyani Tech Park office have confirmed that Byju's has already vacated a significant portion of the spaces, with the rest set to be given up by August. This move by the company to relinquish important office spaces is likely to play a significant role in its restructuring strategy aimed at cost reduction amidst a challenging financial situation.
The severity of the financial burden is evident as Byju's has reportedly laid off more than five thousand employees in the past nine months.
In the previous month, Byju's faced scrutiny from the Employees Provident Fund Organisation (EPFO) due to its failure to make timely payments of PF dues. This incident coincided with the company's decision to lay off approximately 1,000 employees from its sales and marketing teams.
India Today reported that company was pressuring workers to accept voluntary resignations in exchange for a comprehensive exit package. Some employees from the engineering team were assured retention bonuses, but these were never actually disbursed.
In addition to its other challenges, the ed-tech company is now facing scrutiny from the Enforcement Directorate (ED). The agency recently carried out searches and seizures at three of Byju's premises in Bengaluru.
This action was taken in response to a case filed against Byju Raveendran and his company, 'Think & Learn Private Limited,' which serves as the parent company of Byju's. The case was filed under the provisions of the Foreign Exchange Management Act (FEMA).