This week, new troubles have arisen at the Indian Ed tech start up by Jews. There have been elevated concerns among the workforce who were already worried about the unpredictability of their future after a few rounds of layoffs – where over a dozen current and former staff members have been affected.
on Thursday, when the auditor Deloitte along with three major board members of the company severed their ties with the firm, it led to further questions about the ones leading companies financial health and governance strategies. The Bengaluru headquartered firm has already laid off several thousand employees since the beginning of this year because of slow demand and as a measure to cut costs. The company has also been engrossed in a legal battle with its lenders and also faces probe by anti-trust watchdog commissions. Its valuation has been reduced by at least one marquee investor.
A senior manager at by Jews, who requested anonymity said, “morale is at an all time low. Literally every person has a job portal open on their laptop at all times. Everyone wants to leave desperately before they asked to pack up overnight.”
“Right now the situation is so dismal, subordinates are sitting with their managers and job hunting.”
many of the employees – on the condition of anonymity – mentioned that they had received no memos regarding the exits of auditor Deloitte as well as the board members. A spokesperson of the edge tech startup did not respond to queries on staff morale, the lack of communication between management and employees or any other issues related to the company.
Post the initial refusal of the board exit, late on Friday, BYJU’S confirmed in a statement declaring that a few investors had left their board seats.
The manager of the company said, it’s all been eerily quiet so far.” He also added that the lack of communication between the companies leadership and employees was escalating tensions.
Valued at about $22 billion early last year, the education startup, has so far laid off thousands of employees since October in order to minimise costs post the drop in demand for online tutoring after the end of COVID-19 pandemic.
One of the analysts of the company said, “ The general sentiment is that the company is struggling. Almost 90% of us, myself included, waiting for a performance appraisal which hasn’t happened.”
On the condition of anonymity, two employees told media group that performance incentives, bonuses and performance appraisal had halted amid the rising tensions.
Citing conversations with managers who are still working at BYJUS, a former employee said, they “are insecure about their future because top leaders have not been in regular touch with them for about 4 to 6 weeks.”
According to another source who left the company last month, “People count each day anticipating layoffs, today I may be safe, tomorrow I may not. No one is working here out of choice anymore, but due to financial commitments, because they haven’t yet found another good job.”
on Friday, Deloitte refused to comment further on severing ties with by Jews, and the board members also didn’t respond to any of the media groups.
founded 10 years ago by a former teacher Byju Raveendran, the startup has raised over $5 billion – mainly in the last five years. Its offices in Bengaluru were also searched by India’s financial anti-trust agency enforcement directorate in April this year under provisions of the foreign exchange management act. The company has not yet filed audited results for the financial year 2022.
Since December 2022, the company has been in talks with its lenders to search for methods to save cost and to achieve profitability.