Byju Crisis: Byju closed all offices, all employees should work from home

Byju Crisis: Byju closed all offices, all employees should work from home

Byju's: Troubled edtech company Byju's has taken a big decision and closed all its offices. All employees have been ordered to work from home as necessary. The company, which was embroiled in a dispute with investors, had failed to distribute salaries to about 20 thousand of its employees. After this, due to cost cutting, Byju has taken this big step.

All offices closed across the country except the headquarters

According to the information, Byju has closed all its offices across the country except its headquarters located in IBC Knowledge Park, Bengaluru. All employees have been instructed to work from home till further orders. Only Byju's tuition centers will continue to function. This will help the company save a lot of money. Earlier, Byju's founder and CEO Byju Raveendran had promised the employees that their salary for the month of February would come by March 10. But, the company failed to pay the salary. The company had claimed on Sunday that it had made part payment to all the employees. The company management had written a letter asking for more time from the employees to pay the outstanding salaries. 

The ongoing dispute between Byju Ravindran and shareholders 

There is currently a dispute going on between Byju Ravindran and some shareholders of the company regarding the formation of a new board. This matter has gone to court. The court has currently banned the use of the money received from the rights issue. Some time ago the shareholders had approved the removal of Byju Ravindran and his family from the board. Ravindran had declared this meeting illegal. 

The company is not able to utilize the money received from the rights issue  

The National Company Law Tribunal (NCLT) had said in its order issued on February 27 that the money received from the rights issue of the edtech company will have to be kept in an escrow account for the time being. This money cannot be used until the dispute between the company management and the four big investors is resolved.

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Byju Crisis: Byju distributed some part of the salary, wrote a letter asking for more time for the outstanding salary.

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