In a recent town hall meeting held on July 22, BYJU’s, the troubled edtech decacorn, has successfully averted a potential crisis by assuring its employees at BYJU’S Tuition Centre (BTC) that there will be no layoffs. More than 5,000 BTC employees attended the meeting, where the Bengaluru-based firm not only guaranteed job security but also promised to provide variable pay and other incentives to its workforce.
The assurance from BYJU’s came in the wake of rumors suggesting that the edtech major was planning mass layoffs at BTC starting from July 26. Allegedly, the reason behind these speculations was a decline in subscriptions at BTCs, prompting employees to plan a pan-India protest.
However, the situation took a turn when the organizers of the protest claimed that the reinstatement of variable pay and incentives was a reaction to their impending demonstration. According to a protester, the company called an ’emergency’ town hall meeting to preempt the protests.
Contrary to the organizers’ claims, sources close to BYJU’s stated that the meeting was a regular business update, not an emergency one. An internal presentation accessed by Inc42 revealed that ‘layoffs’ and ‘incentives’ were indeed on the meeting’s agenda.
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BYJU’s Spokesperson Addresses Rumors and Paves the Way for BTC 2.0
In an official statement a BYJU’S spokesperson clarified the purpose of the meeting and stated that it was planned in advance to celebrate one year of BTC’s operation and share the roadmap for the next six months. The company emphasized its commitment to building BTC 2.0, a more effective and efficient version of the platform.
The statement further assured that all employee concerns, including restructuring and incentives, were thoroughly addressed, and the company was not aware of any employee protests, dismissing the rumors as incorrect.
Moneycontrol, the first to report on the developments, quoted Zia Ur Rehman, the recently fired area business head of a BTC and one of the organizers of the protest. He confirmed that the protest had been called off.
During discussions between the employees and BYJU’S CEO of India business, Mrinal Mohit, concerns were raised regarding non-payment of performance-linked bonuses and other incentives. Mohit reportedly agreed to most of the demands, assuring the protesters that incentives would be paid from the next month and variable pay would be credited in the following quarter.
Currently, BTC serves 50,000 students in 302 centres in 143 towns, according to the company’s private display. Despite a year since its inception, BTCs continue to face challenges with high sales and marketing costs, as well as considerable refunds in some centers.
Presently, BTC operates 403 active pods, each comprising a combined team for sales and marketing. The company disclosed that sales per person from these pods stood around 1.2.
BYJU’s is now set on a new milestone for BTC 2.0, with the goal of achieving 10 enrollments per center per week and reducing refunds by 30%.
This recent development adds to the series of difficulties that the edtech major has encountered over the past year. Multiple rounds of layoffs have affected more than 5,000 employees in the past. Additionally, the company is under scrutiny for delays in filing financials, as it has not yet submitted its audited financial statements for the financial year 2021-22 (FY22) and FY23. Last month, Deloitte Haskins & Sells, the company’s auditor, resigned, citing these delays as the reason for their immediate departure.
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BYJU’s successful assurance of job security and incentives during the town hall meeting has quelled the protests, providing relief to the company and its employees. As the edtech giant moves forward with its ambitious BTC 2.0 plans, it faces both opportunities and challenges, striving to maintain its position as a prominent player in the dynamic edtech industry.
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