Amidst financial constraints, BYJU’S has implemented a sweeping reduction in the fixed salaries for new sales recruits by more than 90%, according to numerous sources. This change follows the recent decision to tether sales staff remuneration to their performance metrics from the previous month.

  has examined offer letters extended to various inside sales associates in recent weeks, revealing a total compensation package of INR 4 Lakhs per annum, inclusive of variable pay. The offer letters specify a fixed annual salary of INR 1.15 Lakhs, with a maximum performance-linked variable pay of INR 2.8 Lakhs per annum. Consequently, the monthly in-hand salary for inside sales associates will approximate INR 10,000, a steep drop from the previous INR 35,000 to INR 40,000 offered for similar roles until December 2023.

BYJU’S continues to advertise numerous vacancies for inside sales associates on its website, listing the gross annual salary as INR 4 Lakhs. However, this figure obfuscates the fact that the majority of the salary is contingent upon sales performance. Comparatively, just six months prior, job listings for Inside Sales Associates on platforms like LinkedIn advertised annual compensation of INR 7 Lakhs, with a fixed salary component of INR 4 Lakhs. The latest offer letters reflect reductions in both fixed and performance-linked pay.

BYJU’S Intensifies Cost-Reduction Measures

These modifications in hiring budgets align with the edtech behemoth’s strategy to streamline operations under the BYJU’S 3.0 initiative, as previously reported. Last month, co-founder and CEO Byju Raveendran addressed 1,500 sales associates and managers, announcing a shift to a performance-linked salary model, where monthly payouts would correlate with sales achievements. The CEO suggested this model might become a permanent fixture for BYJU’S sales team, rather than a temporary trial for May.

Consistent with this approach, the company reportedly paid May 2024 salaries of sales personnel from the revenue accrued during that month. Nevertheless, BYJU’S still faces outstanding salary and due obligations for thousands of its past and present employees, including those terminated in February and March 2024, as well as pending Provident Fund (PF) contributions for some employees from the months preceding their dismissals.

Earlier, BYJU’S had indicated its intent to settle all PF dues by June, yet no progress has been observed to date. Whether the company will continue its performance-linked pay model for June and subsequent months remains uncertain. However, the annual remuneration offered to new hires suggests this will likely persist.

BYJU’S did not respond to  ’s inquiries regarding the revised pay scale for sales hires. This article will be updated should the company provide any comments.

In addition to cost-cutting measures, BYJU’S aims to boost its sales figures by reducing the prices of its courses. Sources have reported a 30-40% reduction in pricing across various offerings, including the BYJU’S Learning app subscriptions, tuition fees for BYJU’S Tuition Centres, and fees for online courses.

The company has also amalgamated its educator teams for online classes and BYJU’S Tuition Centre verticals, hiring educators at reduced salaries who now teach in a hybrid format, as noted in late April.

Meanwhile, BYJU’S remains entangled in legal disputes with its investors, vendors, and lenders. Despite the speculation that Raveendran is currently in the UAE, he has expressed optimism about reversing the company’s fortunes. However, the current hiring practices and budget cuts depict a stark picture of austerity within BYJU’S.

Harpreet Singh Saluja, president of the Nascent Information Technology Employees Senate (NITES), commented to   that BYJU’S new salary structure exemplifies the pitfalls of unfettered capitalism. He asserted that a fixed salary of INR 1.15 Lakhs is insufficient to sustain a livelihood in many Indian cities.

“With diminished salaries and uncertainty regarding bonuses, employees are facing severe financial challenges. This downward spiral in compensation impacts everyone negatively. It dissuades talented individuals from joining such firms and drives them to seek employment abroad. The government must enforce stricter regulations to ensure companies adhere to minimum wage standards and provide fair compensation to workers,” Saluja added.