BYJU’S fires employees from mentoring, product expert divisions after performance review: Report

The embattled ed-tech firm BYJU'S has downsized its workforce by letting go of more than 400 employees from mentoring and product expert divisions following a company-wide performance review, said a report on Friday.

BYJU'S stated that the layoffs came after thorough evaluations and is aligned with the company's objective to create a more efficient organisation, reported Moneycontrol.

The company, however, claims that only 100 were laid off. Multiple employees reportedly said they were asked to resign by the startup on August 17.

“As part of a periodical performance review, 100 individuals who did not meet expectations after a performance improvement plan, were let go with proper procedures. Please note, this measure is firmly rooted in performance-based considerations and is not in any way a cost-cutting endeavour,” a Byju’s spokesperson told Moneycontrol.

Employees who were asked to resign by the company were offered their August and September salaries as part of the final settlement. Additionally, stringent policies were put into place for those who refused to comply with the directive of resigning from their roles.

In a surprising move, those who resisted the termination request were given immediate marching orders, receiving only their salary payment up to August 17. This means that their services ended abruptly on that day without serving traditional notice periods.

BYJU'S said the affected employees "did not meet expectations after a performance improvement plan". The company further added that job cuts were "not in any way a cost-cutting endeavor".

The full and final settlement of dues is likely to happen within 90 days of the layoffs.

The human resources office reportedly warned employees by saying that those who chose termination over voluntary resignation ran the risk of being labeled as laid off due to performance issues when contacted by other companies.

The revelations created a sense of panic amongst employees, as their prospects of securing new job opportunities seemed to lessen.

Adding to the sense of discomfort and uncertainty, it was further reported that the HR office informed employees that their email addresses would soon be deactivated. They were advised to download any important documents or correspondences that might be vital for their future professional endeavours or personal records.

Meanwhile, the company recently appointed veteran HR leader Richard Lobo as an exclusive advisor to help the company transform its human resources' function.

The layoffs come at a time when the edtech startup has been struggling with numerous challenges, including missed deadlines for term loans, delayed audited financial filings, and a prolonged fundraising process.

The company has fired around 5,000 employees since 2022.

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