Amid financial turmoil, Byju’s, the embattled ed-tech firm, has ensured payroll for all departments except sales personnel, despite grappling with funding shortages.
Previously, the company postponed salary (February and March) disbursements for two consecutive months, subsequently issuing partial payments to employees later in each respective month. The situation arises as Byju’s grapples with a severe shortage of funds.
Byju’s had linked the salaries of its sales staff to the weekly revenue generated by them to address a cash crisis and retention issues. This resulted in suspending regular salaries for the Inside Sales and Byju’s Exams Prep teams.
Amid financial constraints, Byju’s has maintained salary payments for all departments except sales staff.
The edtech giant, facing a cash shortage, has implemented a novel strategy whereby sales employees’ salaries are now contingent on their weekly revenue contributions.
This move reflects Byju’s proactive approach to address its financial challenges while incentivizing sales performance.
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With the new policy in place, the company aims to align employee compensation with revenue generation, potentially bolstering its financial stability and incentivizing sales teams to drive growth in the midst of cash constraints.
Previously in March, the company had abandoned all its office spaces throughout India, opting to maintain only its headquarters at IBC Knowledge Park in Bengaluru.
The company currently employs close to 13,000 employees. This strategic move aligns with the company’s urgent cost-cutting initiatives in response to an impending liquidity crisis.
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