Byju’s Resignation Forced, Bengaluru Employees’ Union Alleges; Edtech Says It’s Part Of A 5% Job Cut
October 31, 2022, New Delhi: Byju’s resignation forced, Bengaluru employees’ union alleges; edtech says it’s part of a 5% job cut.
The Karnataka State IT/ITeS Employees Union (KITU) has accused Byju of indulging in “unfair labor practices” and asked the edtech’s management to “respect the law of the land and reinstate all retrenched employees” with immediate effect.
However, Byju said that each affected employee is informed individually with the sympathy they deserve.
Edtech unicorn and India’s most valuable startup Byju has been accused by an IT employees’ union in Bengaluru of “forcefully” resigning its employees. This comes days after the company came under fire in Kerala for forcing some of its employees to quit.
However, Byju has denied allegations of forced resignation by Bengaluru employees’ union. According to the Karnataka State IT/ITeS Employees Union (KITU), edtech is involved in “unfair labor practices”, asking the company’s management to “respect the law of the land and reinstate all retrenched employees with immediate effect”.
On the other hand, Byju Raveendran-led edtech unicorn has denied these claims that they are a responsible organization. “It is totally wrong that Byju is forcing employees to resign.
Byju is a responsible organization and it follows all the laws of the land,” Economic Times quoted a Byju spokesperson as saying.
A company spokesperson added, “Each employee affected by the restructuring is being notified individually with the sympathy they deserve and need at this time.”
The company announced that it will lay off about 5 percent (2,500 workers) of its 50,000-strong workforce by March 2023 as part of its plan to drive “profitable and sustainable growth”.
They are offering all of them a progressive exit package, including extended family health insurance benefits, outplacement services led by some of the best recruitment experts in the industry, fast-track completion on demand and final settlement and provisions, the spokesperson said. ‘Garden Leave’ where they can find jobs while on Baiju’s payroll.
Meanwhile, according to a regulatory filing by the test-prep platform with the Registrar of Companies, EdTech has taken a loan from its subsidiary Akash Educational Services for “core business activities” of Rs. 300 crore has been collected. Byju acquired Akash for $1 billion last year.
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