BYJU: The company has raised a loan of Rs 300 crore from its subsidiary Aakash Educational Services, according to the information given by Aakash, Byju’s has taken this amount to run the company’s business.
BYJU’s Might Increase Troubles
The difficulties of the education sector company Byju may increase. In fact, on the one hand, the company is raising debt from its subsidiaries for operations. On the other hand, the minister of the Kerala government has started questioning the policies of the company. In an attempt to expand rapidly, the company had made an aggressive strategy. However, now the company is taking steps like laying off employees and closing the office, which has started protesting. Employees within the company seem to be taking a strict stance regarding salaries.
Know what is fresh shock
Byju’s is currently struggling to run its operations. The company has raised a loan of Rs 300 crore from its subsidiary Aakash Educational Services, according to the information given by Aakash, Byju has taken this amount to run the company’s business. Byju’s bought Akash last year for $1 billion. It is clear from this that the company is facing difficulties to run its operations. The company is also cutting costs and doing layoffs for this, but now the opposition to these steps has started and the government of Kerala has raised questions about it.
Company surrounded by news of the closure of the office
On the other hand, the strategy of closing the office to reduce the cost of the company seems to backfire. A minister of the Kerala government has given air to this issue. The minister has alleged that the company is closing offices in the state and pressurizing the employees to resign. The minister wrote through Facebook that many employees met him and told him about it. At the same time, company sources said that except for the Kochi office in Kerala, all other offices have been closed. According to sources, the company is planning more layoffs.
According to media reports, the company has made working conditions difficult, in which the sales team’s time to achieve the target has been reduced from 14 weeks to 8 weeks. At the same time, now instead of two in a week, only one holiday is being given. Due to such situations, the anger of the employees is also increasing and they are coming forward with their demands.
Losses increased 17 times in 2020-21
After a delay of one year, the audit report of Byju has been presented in September this year. The report shows that the loss of this company has increased by 17 times and this loss has reached Rs 4500 crore. In the previous year, this loss was Rs 262 crore. This loss was seen in the earnings of Rs 2428 crore.