Byju's assures no layoffs, offers incentives to halt protests at tuition centres

Byju's, the world's most valued edtech company, faced various challenges this year, including resignations of auditors and directors, government authorities conducting searches, and tensions with term loan B lenders. However, in response to potential protests by over 5,000 employees at Byju's Tuition Centres (BTC), the company held an emergency town hall meeting on July 22.

During the meeting, Mrinal Mohit, the defacto head of Byju's India business, addressed the concerns raised by BTC employees, who were planning to hold pan-India protests on July 25. The main grievances included issues with non-payment of production-linked pay and critical incentives. To prevent the protests and address the demands, Byju's agreed to remit variable pay starting next quarter and other incentives from the following month. Importantly, the company committed to not lay off any employee from the BTCs.

Prior to the town hall meeting, there were speculations that Byju's might initiate layoffs at BTCs, prompted by a significant drop in subscriptions at the tuition centres. However, a source close to the company refuted these claims, stating that there were no plans for such layoffs.

One of the organizers of the probable protests, Zia Ur Rehman, Area Business Head at a Byju's Tuition Centre, was terminated on July 21, with immediate effect. However, the reason for his termination was not clarified by the company. Despite this development, Byju's agreement to the main demands led Rehman and his colleagues to decide against proceeding with the planned protests.

Despite the challenges faced by Byju's Tuition Centres, Byju's co-founder Divya Gokulnath remained optimistic about their future. In an interview with Moneycontrol in January, Gokulnath expressed strong confidence in the tuition centres, stating that the company planned to open as many as 300 physical centres in 2023. These centres would cater to the changing learning landscape, embracing hybrid learning methods to meet the needs of modern students.

In conclusion, Byju's faced a series of troubles this year, but their response to the potential protests at tuition centres shows their willingness to address employees' concerns and uphold job security. With plans for further expansion in the education sector, the company aims to adapt to the evolving learning preferences and continue making an impact in the edtech industry.