Byju’s faces hiring setback, defers offer letters of incoming employees: Report

By India Today Business Desk: Byju’s, India’s most prominent edtech company, is facing a series of challenges as it has deferred the offer letters of incoming employees, causing concerns and uncertainty among prospective hires, reported Business Today.

According to sources who spoke to Business Today, the employment offer letters have been postponed by up to six months, with some individuals now being informed that their joining has been further delayed until January 2024.

This development has raised questions about the company’s stability and the likelihood of fulfilling the promised job opportunities.

Also Read | Setback for Byju’s as biggest investor Prosus cuts valuation

One fresher engineer, who was eagerly anticipating joining Byju’s tech team in June with a package of Rs 22 lakhs per annum, expressed his disappointment at the repeated delays.

Initially pushed to August, he has now been informed that his joining date has been postponed to January next year.

Reflecting on the situation, he shared, “Seeing how things are at the company, I am concerned if there will even be a joining.”

Another employee set to join the company’s product team shared a similar predicament, noting that multiple individuals scheduled to join alongside him received similar emails notifying them of extended delays.

The job market for tech and tech-related roles has seen a significant slowdown, adding to the apprehension of the affected employees.

Also Read | Byju’s seeks to raise $1 billion to stave off investor revolt: Report

With fewer opportunities available, the prolonged deferral of offer letters by Byju’s has left them uncertain about their professional prospects. One employee lamented, “In this job market, I am afraid I will not get any more offers.”

What Byju’s said in response

Responding to queries from Business Today, a spokesperson for Byju’s clarified that the change in joining dates was part of a phased hiring strategy exclusive to the engineering department.

The company emphasised that it was a planned approach aimed at optimizing recruitment efforts and aligning the onboarding process with project priorities and business requirements.

However, these explanations might provide little solace to employees who face extended delays and an uncertain future.

Byju’s tackling multiple challenges

In addition to the deferred offer letters, Byju’s has encountered other issues that have put the company in the spotlight.

Employees have alleged that the company has been withholding provident fund dues to the Employees’ Provident Fund Organization (EPFO), despite collecting contributions from employees.

Also Read | Byju’s employees to finally get their PF dues, EPFO board member assures

This led to an investigation initiated by the EPFO earlier this week.

Furthermore, the company’s auditor, Deloitte, resigned recently citing a “significant impact” on its ability to audit Byju’s due to the company’s failure to provide financial data despite repeated requests.

These developments raise concerns about financial transparency and management practices within the edtech giant.

Adding to the challenges, several high-profile individuals have resigned from Byju’s board of directors, including GV Ravishankar of Peak XV (erstwhile Sequoia Capital India), Vivian Wu of Chan Zuckerberg Initiative, and Russell Dreisenstock of Prosus.

Also Read | Byju’s manager says employees want to leave before they are fired, performance appraisals are still pending

With half of the board stepping down, only Byju Raveendran, Riju Raveendran, and Divya Gokulnath remain in their positions, raising questions about the company’s governance and strategic direction.

The series of setbacks faced by Byju’s has created a cloud of uncertainty surrounding the company’s operations and future prospects.

As employees anxiously await their delayed joining dates and the company grapples with financial and governance challenges, the edtech industry closely watches this unfolding saga.

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