Saturday, July 13, 2024
spot_img
HomeBusinessByju’s delays March salaries, blames 'few misguided foreign investors'. Here's what the...

Byju’s delays March salaries, blames ‘few misguided foreign investors’. Here’s what the company told employees

Byju’s delays March salaries, blames ‘few misguided foreign investors’. Here’s what the company told employees


Byju’s said that it will delay March salaries to its employees making it the third straight month when the edtech company struggled with disbursements. The company blamed ‘foreign investors’ for the financial woes, in an email to employees as it said that “a few misguided foreign investors in Byju’s have obtained an interim order in late February which has restricted usage of the funds raised through the successful rights issue”. The company is following a parallel line of credit to ensure disbursal of salaries by 8 April, the email said as per Mint.

Byju’s logo is seen. Byju’s has been struggling to pay salaries on time since January this year.

What Byju’s email said to employees on salaries?

“We are writing to you today with a heavy heart but with a message of hope and reassurance. We regret to inform you that there will again be a delay in the disbursement of salaries…This irresponsible action by the 4 foreign investors has compelled us to temporarily hold the disbursal of salaries until the restriction is lifted,” it said, adding, “We have full faith in the Indian judicial system and we eagerly await a favourable outcome that will enable us to utilise the funds raised through the rights issue and alleviate the financial challenges that we are currently facing.”

Hindustan Times – your fastest source for breaking news! Read now.

Byju’s salary woes in January and February

Byju’s has been struggling to pay salaries on time since January this year. In February, Byju Raveendran said in an email to employees, “I have been moving mountains for months to make payroll, and this time, the struggle was even bigger to ensure that you receive what you rightfully deserve.” The company has reportedly paid only a portion of February salaries and said that it will ‘pay the balance once the rights issue funds are available’.

Byju’s vacates offices across country

Yhis comes after the company vacated its offices across the country except its headquarters at IBC Knowledge Park in Bengaluru. The move might be a larger plan to cut costs but the company struck a reassuring note in the email to employees as it said, “We understand the feelings of helplessness that may arise due to these circumstances, and we share your frustration. However, we urge you to hold onto hope and remain resilient. Byju’s has overcome challenges recently, and we firmly believe that together, we will overcome this last hurdle.”

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it’s all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs



Source link

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -
Google search engine

Most Popular

Recent Comments