Byju’s to Close 200 Offline Tuition Centres In Cost-Cutting Move

New Delhi: Cash-strapped edtech company Byju’s is reportedly planning to shutter approximately 200 of its 300 offline tuition centres across India as part of a cost-cutting strategy. This move follows the closure of 50 centres in February.

The offline tuition centres, known as Byju’s Tuition Centres (BTCs), were previously viewed as a key growth driver for the company, with expansion efforts ongoing until early 2023. However, the company is now opting to exit these centres, with plans to commence the process next month.

In addition to the closure of tuition centres, Byju’s has mandated its employees to work remotely, relinquishing office spaces nationwide due to financial constraints. The company has retained only its headquarters in Bengaluru, a decision made as part of CEO Arjun Mohan’s restructuring efforts aimed at conserving cash. This move comes amidst challenges in accessing funds from a rights issue, amounting to approximately $250-$300 million, due to disputes with certain investors.

While facing financial challenges, Byju’s has partially disbursed employee salaries for February. The company has assured staff that the remaining balance will be paid once funds from the rights issue become available.