A union of IT workers in Bengaluru has accused Byju’s, India’s most valuable startup and unicorn in the edtech sector, of forcing its employees to resign. Just a few days prior, the business in Kerala came under criticism for allegedly pushing several of its employees to resign.
A brief about According to the Bengaluru employee union, Byju is pressuring people to resign; edtech claims it’s part of 5% employment reduction
However, Byju’s has refuted the Bengaluru staff union’s accusations of forcible resignations. The edtech is participating in “unfair labor practices,” according to the Karnataka State IT/ITeS Employees Union (KITU), which is requesting that the management of the business “follow the law of the land and reinstate all retrenched employees” with immediate effect.
On the other hand, the Byju Raveendran-led edtech unicorn has refuted the allegations, asserting that they are a respectable organization. “The claim that Byju forces employees to resign is completely untrue. A Byju spokeswoman told the Economic Times that the company is responsible and upholds all local laws.
The corporate representative continued, “Each employee who is affected by the restructuring is being told personally with the empathy that they deserve and need at this time.” According to the company’s strategy to “expand profitably and sustainably” by March 2023, it will let go about 5% (2,500 employees) of its 50,000-person staff.
According to the spokesperson, they are offering each one of them a progressive exit package that includes benefits for extended family health insurance, outplacement services overseen by some of the best recruitment specialists in the business, fast-track full-and-final settlement upon request, and the provision of “garden leave,” which allows them to look for jobs while still employed by Byju.
According to regulatory papers made by the test-prep platform to the Registrar of Companies, the edtech has raised Rs 300 crore in loans from its subsidiary Aakash Educational Services for “main business activities.” Aakash was purchased by Byju’s for $1 billion last year.