Tuesday, July 23, 2024

Byju’s Implements New Pay Policy Amid Cash Crunch

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Edtech giant Byju’s, grappling with a cash crunch, has introduced a new pay policy linking sales employees’ salaries to weekly revenue generation. The move comes amid financial challenges faced by the company, necessitating innovative measures to manage resources effectively.

According to an internal company document, the new policy applies to sales teams, including the Inside Sales (IS) and Byju’s Exam Prep (BEP) teams. It stipulates that a percentage of the weekly revenue generated by sales staff will be disbursed directly to them, with base salaries temporarily suspended during the period.

The policy, effective for a duration of four weeks until May 21, aims to incentivize sales associates to drive revenue generation actively. Under the new system, 50% of the upfront weekly collection will be distributed to sales associates weekly.

Byju’s Implements New Pay Policy

The document clarifies that in instances where an associate fails to generate any revenue in a given week, they will not receive any payout or salaries due to the temporary suspension of base salaries.

This development follows Byju’s shareholders’ approval of a rights issue, aimed at addressing the company’s severe cash crunch. The rights issue allows parent company Think & Learn Private Limited to issue fresh shares, facilitating efforts to address unpaid salaries, regulatory dues, and vendor payments.

Edtech startup Byju's App Logo

Despite the challenges posed by the cash crunch, Byju’s remains committed to navigating the situation strategically while ensuring the well-being of its employees. The implementation of the new pay policy reflects the company’s proactive approach to managing financial constraints while maintaining operational continuity.

As Byju’s continues to explore avenues for financial stability and growth, the temporary measures introduced underscore the company’s resilience and adaptability in the face of evolving economic dynamics.

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