The edtech corporation has come under fire since 2022 for firing over 5,000 workers, delaying reviews, withholding payments to provident funds, and withholding performance-linked compensation.
A new social media policy that Byju’s has put into place prevents staff from interacting with the media. This choice was made at the same time that the business announced significant corporate restructuring and the likely termination of 4,000–5,000 employees.
Employees who violate these rules may be subject to disciplinary or legal action, according to an internal business communication reviewed by Moneycontrol on September 26. In the document titled “Social Media Policy Version 1.0,” it is stated clearly that “You are not permitted to speak directly with any media house or share Company’s information, including images, videos, screenshots, etc. The Company will take any breach of this seriously and may take necessary administrative and legal action against you.
Prior to introducing a social media policy and communicating it throughout the entire organization, the company gave new hires a copy of its code of conduct. However, this change appears to be a response to the growing discontent expressed by both current and former employees on various media platforms.
Although many businesses have social media guidelines that specify how staff members should behave on open forums, the timing of this policy’s introduction on the same day the business announced a significant restructure that will effect thousands of employees may be coincidental.
In order to avoid sensitive information breaches, Byju’s has recently opted to use video and audio calls rather than written notices when terminating staff.
The document also shows Byju’s plans to actively watch over interactions between staff members, exchanges with the outside world, and any company-related social media posts.
The edtech corporation has come under fire since 2022 for firing over 5,000 workers, delaying reviews, withholding payments to provident funds, and withholding performance-linked compensation.
Byju’s has made measures to increase efficiency in order to solve financial difficulties, including giving up its largest office space in Bengaluru. The company has suggested repaying a disputed $1.2 billion term loan B to its lenders within the next six months, with an initial payment of $300 million in the following three months, as part of its efforts to resolve an impending liquidity problem. Byju’s is thinking about selling two important assets, Great Learning and US-based Epic, to pay for these payback schemes.
Additionally, Byju’s has been looking for additional equity capital all year, but it has run into difficulties because of a variety of domestic and foreign concerns. Davidson Kempner loaned the company $250 million in structured instruments in May, but the company ran into issues with its lenders and went into a technical default on the Davidson Kempner loan. Byju Raveendran, the company’s founder, sought money to pay back the debt in order to maintain control over Aakash Educational Services, which had pledged its shares as security for the loan.
Byju’s is also looking for ways to raise money from Ranjan Pai, one of its first donors, for Aakash Educational Services. According to reports, Pai is thinking about buying some of Raveendran’s shares in Aakash, which Raveendran now owns close to 30%.
