Ed-tech firm Byju's has defered the final settlement for laid off employees to November, reported Money Control. This comes as the company is grappling with a liquidity crunch amid lender commitments and a long-pending fundraise.
Earlier the company had promised that the settlement would be done by September. In June, Byju's reduced their workforce significantly, impacting nearly 1,000 employees which the company called a strategic step towards achieving profitability.
Also Read: Byju's layoff: Ed-tech asks for voluntary resignations following performance review
The company at the time of layoffs had assured the employees that the salaries of June and July along with some incentives would be settled by September 15. However, on September 14, the company sent an email to the affected employees notifying them of a delay in disbursing their dues.
As per Moneycontrol, the employees can expect their outstanding payments by November 17.
“This is to inform you that the full and final settlement amount will be released latest by 17th November 2023. We are sorry for the inconvenience caused”, Byju's wrote in the mail.
A Byju's spokesperson also told MoneyControl that the company is committed to meet all its obligations as soon as possible.
"We regret and acknowledge the delays in settling dues of former employees. As we work through a difficult business restructuring, we are committed to meeting all our obligations as soon as possible," a Byju's spokesperson told MoneyControl.
This move comes amid its commitment to repay the entire amount to lenders within the next six months, even as it tries to close a long-pending funding round.