22 March 2024 – Facing financial challenges, edtech giant Byju’s is set to shut down approximately 200 offline tuition centres out of its 300 centres nationwide, marking a significant cost-cutting strategy amidst its cash crunch.
Byju’s decision to shutter a substantial portion of its tuition centres follows the closure of 50 centres in February, signaling a shift in its operational strategy. These centres, known as Byju’s Tuition Centres (BTCs), were once pivotal for the company’s growth trajectory but are now deemed unsustainable amid financial constraints.
While Byju’s has yet to officially comment on the matter, the move to close tuition centres aligns with its recent mandate for employees to work remotely and relinquish office spaces nationwide. The company’s headquarters in Bengaluru remains the sole operational hub, as it grapples with cash flow challenges exacerbated by delayed proceeds from a rights issue.
By disbursing partial salaries to its workforce, comprising over 20,000 employees, for the month of February, Byju’s aims to mitigate immediate financial pressures. However, full salary payments are contingent upon the availability of funds from the pending rights issue, expected to be resolved imminently.
