Byju's implements strict social media policy amidst company restructuring, says report

Byju's has implemented a new social media policy that restricts employees from engaging with the media. This decision coincided with the company's announcement of significant business restructuring and the potential dismissal of 4,000 to 5,000 employees.

According to an internal company communication reviewed by Moneycontrol on September 26, employees who do not comply with these guidelines may face disciplinary or legal actions. The document, titled "Social Media Policy Version 1.0," explicitly states, "You are not allowed to speak directly with any media house or provide Company’s information including pictures, videos, screenshots, etc. Any violation of this will be taken seriously by the Company, and appropriate disciplinary and legal actions may be initiated against you."

Previously, the company provided new hires with a code of conduct document, but the decision to introduce a separate social media policy and communicate it across the entire organisation appears to be a response to growing discontent expressed by both current and former employees on various media platforms.

While many companies have social media policies that dictate employees' conduct on public platforms, the timing of this policy's release may be coincidental, occurring on the same day the company announced a major restructuring affecting thousands of employees.

In recent times, Byju's has shifted away from written communication when notifying employees about terminations, opting instead for video and audio calls to prevent leaks of sensitive information.

The document also reveals that Byju's plans to actively monitor employees' interactions, external communications, and all social media posts related to the company.

Since 2022, the edtech company has faced criticism for laying off over 5,000 employees, delaying appraisals, withholding provident fund payments, and withholding performance-linked pay.

To address financial challenges, Byju's has made efforts to improve efficiency, including giving up its largest office space in Bengaluru. The company is also working to address a looming liquidity crisis and has proposed repaying a disputed $1.2 billion term loan B to its lenders within the next six months, with an initial payment of $300 million in the next three months. To fund these repayment plans, Byju's is considering selling two key assets, Great Learning and US-based Epic.

Furthermore, Byju's has been seeking additional equity funding throughout the year, but it has encountered challenges due to various domestic and international factors. Despite raising $250 million in structured instruments from Davidson Kempner in May, the company faced difficulties with its lenders and experienced a technical default on the Davidson Kempner loan. As a result, Byju's founder Byju Raveendran sought funds to repay the loan to retain control of Aakash Educational Services, which had offered its shares as collateral for the loan.

Byju's is also exploring fundraising options from one of its earliest backers, Ranjan Pai, for Aakash Educational Services. Pai is reportedly considering purchasing a portion of Raveendran's stake in Aakash, where Raveendran currently holds close to a 30 per cent stake.

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