Heart goes out to team members who are facing downsizing: Byju Raveendran writes to staff

“As I sit down to write this heartfelt message, I am filled with a sense of deep appreciation and admiration for you. I am writing to address recent events that may have caused concerns or uncertainties among our team…In light of recent happenings, there have been discussions surrounding our beloved company Byju’s, which have given rise to misconceptions and speculations. While we acknowledge the challenges we are currently facing, we are actively addressing them. We have taken strategic measures to ensure sustainability and profitability by streamlining our business operations and optimising our team size. With a strong foundation and an exceptional team, we are now poised for sustainable growth in the days ahead.” read the email Raveendran sent hours after addressing his employees in a virtual town hall earlier in the day.

Byju’s has undertaken multiple rounds of layoffs amid uncertainty around the company’s cash position and overall slowdown in its business post the Covid-19 bump up.

Raveendran had said during the town hall that it was important for him to shed light on recent developments, including the resignations of the company’s auditor (Deloitte) and board members as well as the issues surrounding its loan renegotiations.

“This strategic decision ensures the timely completion of our audits and reinforces our proactive approach to financial management,” he said in the email, referring to Deloitte’s resignation as its official auditor and BDO’s (MSKA & Associates) appointment for five years.

Last week, the firm was hit by high-level exits as three board members — GV Ravishankar, managing director at Peak XV Partners (formerly Sequoia Capital India), Russell Dreisenstock of Prosus (previously Naspers) and Chan Zuckerberg Initiative’s Vivian Wu — stepped down, dealing another blow to the struggling company.

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That same day, the auditor replacement had taken place.ETtech reported that a Delaware court had rejected a request by Byju’s TLB lenders to investigate a $500-million transfer from US-based Byju’s Alpha to other entities, giving the edtech firm some much-needed relief.

The company has been engulfed in court cases with lenders, loan defaults, valuation markdowns by investors, and suffered setbacks due to the delay in filing its financial results for the year ended March 31, 2022.

About the Bengaluru-headquatered company’s dispute with its lenders on its $1.2 billion term loan B (TLB), he said he was pleased to share that recent developments have been favourable, and he hopes to achieve a positive outcome soon.

“This is not to suggest that we are not facing some tough headwinds, many of which are related to the prevailing adverse macroeconomic conditions… the challenges we face seem magnified by the spotlight that comes with being the world’s leading edtech company,” he said. He added that “things are rarely as glorious as they seem or as dire as they are presented.”

“This company is not just my work; it is my life. For 18 years, I have dedicated more than 18 hours a day to Byju’s, pouring my heart and soul into this mission. And I want to do this for at least 30 more years,” he said in the email. He also said that he has reinvested the entire amount received through secondary share sales back into the company.