 "Byju's pays November salaries to 1,000 employees after 4-day delay")
Edtech company Byju’s on Monday credited pending November salaries to about 1,000 employees, providing relief as it battles challenges that include securing fresh capital, delays in financial reporting and legal disputes with lenders.
The salaries were to be credited by December 1. Byju's said a technical glitch in uploading details to a payroll service system delayed the salaries and has been resolved now.
"We have noticed a delay in processing salary for some limited employees (less than 5 per cent) due to an unexpected technical glitch,” said a Byju’s spokesperson. “The issue (was) being rectified over the weekend and payment will be processed by Monday."
Byju's has been criticised for delaying the 'full and final' settlements of employees it has laid off. In September, the firm said it will clear the settlement amid "difficult business restructuring". According to a new timeline provided in a company email, employees laid off were expected to receive their outstanding payments by November 17. The earlier deadline was September 15.
Byju's and its subsidiaries have 35,000 employees. Byju’s will lay off around 4,000 employees, or over 11 per cent of its workforce, over the next few weeks as part of a restructuring exercise. The restructuring exercise is being undertaken by Arjun Mohan, who was recently elevated as chief executive officer of its India business, replacing Mrinal Mohit.
The cash-strapped company is going through a strategic restructuring and reorientation of its leadership team to enhance operational efficiency, cut down losses, and achieve profitability.
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The Board of Control for Cricket in India (BCCI) has taken Think & Learn, the parent company of Byju’s, to the National Company Law Tribunal (NCLT). The case was filed on September 8, but it was officially registered only on November 15. The case was scheduled for a hearing on November 28, according to the NCLT website. The NCLT website indicates that the case is set to be heard again on December 22. Months ago Byju's announced that it plans to end sponsoring the cricket team jersey, as it focuses on profitability.