Byju's Layoffs Continue: What is the Cause of Downfall?

According to reports, Byju's has requested  hundreds of its workers to submit their resignations. The edtech company has been in the news recently due to layoffs. According to reports the popular  edtech has  requested hundred of employees in its mentorship and product expert division workers to depart. The employer allegedly subjected these employees to a performance evaluation in July.

Is Byju's Laying Off Employees Due to Poor performance?

Byju's confirmed that it eliminated around 100 employees due to poor performance. "As part of a periodical performance review, 100 individuals who did not meet expectations after a performance improvement plan were let go with proper procedures," a Byju's representative claimed. "Please keep in mind that this measure is firmly rooted in performance-based considerations and is in no way a cost-cutting endeavour," according to reports.

However, some current and former employees claim that the layoffs number in the hundreds. Since last year, Byju's has laid off around 5,000 people. Along with significant layoffs, delayed assessments, legal problems with lenders, governance concerns, and overall operational obstacles, the startup post-pandemic has been plagued.

What is the cause of Byju's downfall?

Crises have seized Byju's after the once-flying tutoring company failed to file its financial statements on time, missing an interest payment on its term loan, and launched a court battle with its creditors. Several US-based investors accused Byju's of concealing $500 million, bringing litigation.