New Delhi, March 12 (IANS) Leading education institution FIITJEE has reportedly withheld a portion of employees’ salaries for the second consecutive month amid growing competition and stagnant growth of its coaching centres across the country. In the past few weeks, the company’s management has sent emails to employees to inform them that it has “deliberately suspended salaries” to give them a “wakeup call” to work harder, while mentioning that they are not facing an immediate liquidity crisis.
The company operates over 100 study centres in the country and has a workforce of about 4,000 teaching and non-teaching employees. “Coming to the office without clear goals will not take you anywhere. Salary is not a matter of right, it needs to be earned by doing what is expected of you to do,” Dinesh Kumar Goel, founder and managing director of FIITJEE, reportedly wrote in one of the emails.
Moneycontrol was the first to report about the development. FIITJEE did not immediately comment on the report. FIITJEE reportedly paid 50 per cent of January salaries while holding the rest. “On the basis of the achievements and commitments of the teams, we will immediately start releasing the salaries in line with the centre’s business plans,” Goel was quoted as saying in the email.
Lately, traditional education companies like FIITJEE have been facing stiff competition from new-age digital companies like Unacademy and Byju’s, who have forayed into offline education, apart from Aakash and Allen Institute. FIITJEE’s decision to withhold salaries reflects the challenges faced by the traditional education sector in adapting to changing market dynamics and increasing competition.
