Crisis-hit edtech giant has seen its valuation cut from from $22 billion to around just $5 billion as in a challenging year for India’s most valuable startup.
Battling on multiple fronts already, former billionaire Byju Raveendran-led company has reportedly evaded protests planned by its staffers with promises made in an allegedly unplanned town hall. In a call with over 5,000 Byju's Tuition Centre (BTC) staffers, the company has promised not to lay off more personnel and agreed to remunerate them by releasing incentives and variable pay, according to a report from Moneycontrol.
Many of Byju's employees had reportedly planned a protest on July 25 over several issues like incentives and non-payment of variable pay, people aware of the matter told MC. The deliberations with the employees were led by Byju's top executive Mrinal Mohit. Staffers have decided to temporarily call off the protests, Economic Times reported.
While a Byju's spokesperson said that the company wasn't aware of any planned protests and the town hall was planned well in advance, employees reportedly countered saying the town hall "happened to stop the protests on July 25".
Byju's has also reportedly laid off a BTC Area Business Head called Zia Ur Rehman who was the main organiser for the July 25 demonstration. Rehman told MC that the reason for his termination was not clarified by Byju's.
The murmurs of unrest in ranks comes amid a spat of problems recently faced by Byju’s. It comes after founder and CEO Raveendran recently admitted past mistakes in an assurance call to shareholders last month. Byju’s is facing questions over its corporate governance practices and delayed financial reports. Auditor Deloitte’s resignation and a boardroom exodus added to its woes. The firm is involved in a legal battle with a US lender. The company saw a positive development last week as former SBI chief Rajnish Kumar and IT industry veteran T V Mohandas Pai will join its Advisory Council.
(Inputs from PTI)
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