Job hunting post-layoff can strain one's mental well-being, though having experience from a well-known firm typically eases the process. However, for former Byju's employees, the situation is different. The company's damaged reputation is hurting the chances of ex-employees getting hired because many employers are hesitant to hire people connected to Byju’s.
Why? Because of Byju's toxic workplace culture and business ethics. So despite having the required qualifications, their applications are getting rejected.
Vivek Mehta, a partner at ABC Consultants, a well-known executive search and leadership talent advisory firm, revealed to the Financial Express that many companies have told them not to consider applicants who have worked at Byju's. This training covers roles in technology, sales, and marketing, suggesting that employers are concerned about this issue in general.
“We have received requests from multiple companies to avoid screening Byju’s candidates due to the negative perception around the company,” Mehta stated.
“Concerns about misgovernance and multiple legal battles at Byju’s have impacted the perception around the company and the candidates that have the troubled edtech on their profile. In an environment where companies are focusing on governance, profitability and growing sustainably, these candidates are being seen as a risk,” he added.
“This outlook is coming from both edtech companies as well as non-edtech companies,” he added.
Mehta went on to say that in addition to the direct requests, it has become more and more difficult for the resumes of the many former Byju's workers to stand out or be given the consideration they deserve in the wake of the widespread layoffs.
An anonymous edtech company's CEO revealed that they received a lot of job applications and that many of them came from Byju's employees. The CEO did, however, emphasise the importance of cost consciousness, pointing out that businesses are under pressure to demonstrate profitability.
What is going on in Byju’s?
It has been a roller coaster ride for Byju’s, once a multi-millionaire startup based in Bangalore, now engulfed in various problems, which include financial difficulties, legal disputes, a declining valuation, and management problems that lead to layoffs, and uneven and delayed pay.
Also Read: Byju’s - The Brutal, Very Public Death of an Unicorn (vygrnews.com)
The Toxic Work Culture
The company's explosive growth has been accompanied by claims that it cultivates a toxic workplace culture and puts extreme pressure on staff to increase client acquisition. A number of things appear to have an impact on people's perceptions of Byju's, such as rumours of pushy salespeople and a demanding workplace. Because of these worries, some businesses now see former Byju's workers as possible ambassadors of a poisonous workplace culture, which makes them cautious when hiring new staff members.
Employees of Byju have claimed in a recent investigation that dishonest sales tactics and an abusive and exploitative work environment are the foundation of the company's success. According to reports, one of these tactics is to single out people from low-income households and put pressure on them to enrol in Byju's classes. Fearful of losing their jobs in India's competitive labour market, many of these employees, many of whom are first-generation college graduates or hail from low-income backgrounds, tolerate the harsh atmosphere.
An earlier Reuters story claimed that Byju's workplace had a depressing vibe and that staff members were actively looking for other jobs because they were afraid of being let go at any time. According to a senior manager who wished to remain anonymous, morale was at an all-time low.
Almost every worker had a job search portal open on their laptop at all times, and many expressed a strong wish to quit rather than face unannounced layoffs. The manager also saw supervisors and their staff members working together to find new jobs.
When asked about the general perception of the company's difficulties, one analyst estimated that about 90% of workers, including themselves, were waiting on past-due performance reviews. Employees who are laid off are entitled to severance pay equal to two months' salary; they should receive their full and final settlement by September or October, which is about 45 days after July. After this time, the company won't offer any more severance pay.
Mass Layoffs in Byjus:
Since the beginning of 2022, Byju's has experienced several rounds of layoffs as a result of declining demand and budgetary constraints. Even though the troubled edtech giant has laid off about 10,000 employees in the last two years, which includes 500 of them in the most recent round.
Surprisingly, the job postings by outside hiring consultants on LinkedIn suggest that the company is actively looking to hire new staff.
According to reports, Byju's was encouraging staff members to leave on their own, taking them by surprise and giving them no warning. Some workers even claimed that their official identity cards were seized and that their email addresses were abruptly terminated.
Also Read: Byju's layoff: Cuts roughly 1000 employees (vygrnews.com)
Salary Delays
Amid financial difficulties at the edtech company, Byju Raveendran, the founder and CEO of Byju's, apparently obtained a private debt of about Rs 30 crore to cover employee salaries for March. Teachers and lower-level staff members received full compensation for March, while senior staff members only received partial payments.
The funds raised through a recent rights issue are locked in a different account because of an ongoing dispute with investors, which is the reason for the payment delay. According to sources, Byju's, which employs roughly 15,000 people, will need to pay salaries totaling between Rs 40 and Rs 50 crore.
Leadership Change
The company announced on April 15th that Byju's founder, CEO Arjun Mohan resigned from his position just after seven months. Mohan was then moved into a position as an external advisor. The leadership was handed over to the company's founder, Byju Raveendran. But when Investors asked for his resignation too. However, referring to the acts of investors as a conspiracy, Raveendran declines to resign.
Also Read: Byju's CEO Resigns just with 7 months of joining (vygrnews.com)
Following the filing of a lawsuit by a US-based investment firm alleging financial irregularities, board resignations and internal restructuring occurred. Concerns regarding the stability of the company were also raised by its tardiness in filing financial reports. Due to Byju's nearly year-long delay in filing its 2021/22 financial results, auditor Deloitte and three board members resigned citing disagreements with Raveendran. In November 2023, the company's chief technology officer and chief financial officer also resigned.
Aggressive Marketing
And lastly, Byju's has a reputation for using aggressive marketing strategies and handling money poorly. Its financial situation has been strained by sponsoring important events and celebrity endorsements, which will result in a $1.2 billion loan default in 2021. Notably, in 2022, the business appointed Messi as the face of its social impact program, "Education For All." But because of a serious cash crunch, the business has now put a halt to the agreement and is debating whether to end it early or look for other ways to make it work.
Photo Credit: Multiple Sources
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