Auditor Deloitte and three prominent board members severed ties with the Bengaluru-headquartered firm on Thursday, raising further questions about the once high-flying company’s financial health and governance practices.
Byju’s has already let go of several thousand employees this year due to slowing demand and it is locked in a legal battle with its lenders and faces regulatory scrutiny, even as its valuation has been slashed by at least one marquee investor.
“Morale is at an all-time low. Literally every person has a job portal open on their laptop at all times. Everyone wants to leave desperately before they are asked to pack up overnight,” said a senior manager at Byju’s, requesting anonymity.
“Right now the situation is so dismal, subordinates are sitting with their managers and job hunting.”
Several employees, all of whom requested anonymity, said they had received no memos about the exits of auditor Deloitte and the board members.
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A Byju’s spokesperson did not respond to Reuters queries on staff morale, the lack of communication from management or other issues raised by employees. After initially denying the board exits, Byju’s late on Friday confirmed in a statement that a “few” investors had vacated their board seats.
“It’s all been eerily quiet so far,” said the manager, adding that the lack of communication from the company’s leadership was heightening employee concerns.
The edtech firm, valued at about $22 billion early last year, has laid off thousands of employees since October to cut costs, after seeing demand for online tutoring drop following the end of the Covid-19 pandemic.
Two of the employees that spoke to Reuters said performance incentives, bonuses and appraisals had stalled amid the turmoil.
“The general sentiment is that the company is struggling,” said one analyst at the company. “Almost 90% of us, myself included, are waiting for a performance appraisal which hasn’t happened.”
A former employee, citing conversations with managers who are still at Byju’s, said many “are insecure about their future, because top leaders have not been in regular touch with them for about four- to six-weeks.”
Another source, who left Byju’s last month, said: “People count each day anticipating layoffs, today I may be safe, tomorrow I may not. No one is working there out of choice anymore, but due to financial commitments, or because they haven’t yet found another job.”
Deloitte on Friday declined further comment on cutting ties with Byju’s, and the board members either did not respond to phone calls or were not reachable.