Edtech firm has postponed the full and final (FnF) settlement for employees who were laid off recently due to various challenges, including a liquidity crunch, according to people familiar with the development.
The Bengaluru-based company in June laid off more than 1,000 employees who were to receive their pending salaries as part of their FnF settlements by September 15. However, the FnF settlement for these employees was postponed by at least a couple of months, the people said.
Moneycontrol was the first to report the development.
BYJU’S is expected to clear the final settlements of these employees by November 17, according to the report.
“We regret and acknowledge the delays in settling dues of former employees. As we work through a difficult business restructuring, we are committed to meeting all our obligations as soon as possible,” a BYJU’S spokesperson said in response to YourStory’s queries.
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Over the past year, the edtech firm has executed multiple workforce trimmings as part of its ongoing cost-cutting initiatives.
In the last few weeks, BYJU’S also witnessed a series of high-level departures, while its test prep subsidiary, Aakash Educational Services, established an executive council tasked with identifying and appointing new CEO and CFO.
Meanwhile, the company has been working towards repaying the debt associated with a $1.2 billion term loan B (TLB). It is also exploring the sale of two of its assets—Epic and Great Learning—to generate at least $800 million. The edtech company is also in discussions to secure equity investments from sovereign funds based in the Middle East.
With an equity raise and asset monetisation, BYJU’S could potentially repay the TLB and still have funds remaining, sources told YourStory.
The Bengaluru-based company is expected to complete its FY22 audit by the end of September.
Edited by Akanksha Sarma
