Byju’s rolls out new social media policy for employees amid layoffs

Posted on by

Edtech major Byju’s has rolled out a new social media policy prohibiting employees from communicating with the media.


The development comes at a time when the Bengaluru-based company is planning to restructure businesses and lay off around 4,000 employees, according to the sources.

“You are not allowed to speak directly with any media house or provide the company’s information, including pictures, videos and screenshots, among others. Any violation of this will be taken up by the company seriously and may result in appropriate disciplinary and legal action against you,” said the internal company document titled Social Media Policy Version 1.0, a copy of which has been reviewed by Business Standard.

Also Read: Edtech firm Byju’s to lay off 4,000 employees in major restructuring


A person aware of the company strategy said the management came up with the new social media policy as some people who didn’t have full information would leak it out. This impacted the reputation of the company.


“The management decided that the information to the media should come from someone who is authorised to do so. Otherwise, if wrong information is shared, it not only impacts the Byju’s team, but their families as well,” said a person.


Byju’s, once the most-valuable edtech company, has been in the news for the wrong reasons. These include sacking employees and alleged “abusive” work culture. 


Many current and former employees have voiced their dissatisfaction and grievances against the company across various media platforms.


In the document, the firm said that it may actively monitor employee interactions, external communications, and all social media postings and publications from them, which are related to the company. 


Violation or breach of this policy may result in the company taking appropriate disciplinary action, including termination of employees, referring them to a disciplinary committee or it may initiate appropriate legal proceedings. 


The new social media policy is a part of the company’s strategy for a major business restructuring. The restructuring includes simplifying operating structures, reducing the cost base and better cash flow management. It also includes laying off about 4,000 employees or over 11 per cent of its total workforce over the next few weeks, according to the sources.


The edtech firm has a total headcount of about 35,000 employees.


According to the sources, the restructuring exercise will be undertaken by Arjun Mohan, who was recently elevated as chief executive officer (CEO) of its India business, replacing Mrinal Mohit.


Mohan, who was once the company’s chief business officer, returned to spend the last three months working with founder and group CEO Byju Raveendran.


Byju’s recently said it will clear the full and final settlement dues of laid-off employees soon amid the “difficult business restructuring.”


Earlier this year, Byju’s laid off about 1,000 employees.


Sources in the company said the move was part of the “optimisation” strategy that the edtech firm had announced last year, which included sacking 2,500 workers.  


In August this year, the firm handed pink slips to 100 employees in a fresh round of layoffs, after a performance review. However, according to a media report, the edtech company has sacked about 400 people.


Last year, Byju’s laid off about 600 at its group companies — WhiteHat Jr and Toppr. It said this was a move to drive cost efficiency. The firm is likely to rebrand its online coding platform WhiteHat Jr, according to several media reports.


The company is reportedly integrating the coding platform with an existing arm ‘Byju’s Future School’ and it would have an expanded offline presence.


Byju’s has decided to put two of its key assets — Epic and Great Learning — on the block to generate $800 million-$1 billion in cash.


This will help meet the firm’s various commitments, including repaying the entire $1.2 billion term loan B within six months, according to sources.


The cash-strapped company has proposed repaying $300 million of the $1.2 billion loan in the next three months. This will depend on whether the lenders accept Byju’s amendment proposal, said sources.


In August, Byju’s appointed veteran Infosys HR leader Richard Lobo as exclusive advisor to help transform its HR function. This move will help Byju’s fortify its “employee-centric” culture.