Focus Edumatics Layoff: Employees File Complaint Over Unpaid Wages and Abrupt Shutdown:

A group of former employees of Focus Edumatics Pvt Ltd, the Indian subsidiary of the US-based education firm, has filed a complaint with the Karnataka Labour Commissioner. They have accused the company of non-payment of wages and financial dues following its abrupt shutdown on January 25, 2025.

The complaint includes signatures from full-time employees, freelance tutors, and vendors, highlighting that over 1,700 remote tutors and other staff were affected. However, sources suggest that the total number could be close to 3,000 if the contractual workforce is considered.

Background of the Company Shutdown

Focus Edumatics provided technology-enabled education services and was acquired by San Francisco-based private equity firm Alpine Investors in 2022. Employees were blindsided by the sudden closure and left without severance pay or financial settlements.

On February 12, the company received a notice from the Karnataka Labour Department, just a day after employees filed the complaint. Despite multiple attempts, emails and messages to the company remain unanswered.

Abrupt Announcement Without Warning

On January 25, CEO Reed Overfelt held an unexpected “All Hands” meeting at 8:30 PM on a non-working day, where employees were informed that it was their last working day. The company cited poor financial performance and declining revenue as the reason for the closure.

Employees were not allowed to ask questions during the meeting.
No formal communication was made about financial settlements.
Former India COO Abhinav Ramani allegedly left for the US before the announcement.

Some employees suspect fund misappropriation, claiming that available company funds could have been used for their settlements.

Employee Protests and Legal Actions

Following the layoffs, hundreds of affected employees staged protests in Coimbatore, where a significant portion of the workforce was employed. Some employees had worked for over two years without receiving formal notice before termination.

Employees had filed a petition with the Additional Labour Commissioner, leading to a joint hearing. However, they claim that:

Company representatives failed to attend.
Notices were denied.
No official response has been received from the company's leadership.

Employee Demands and Pending Settlements

While a few employees have received gratuity and partial January payments, many are still waiting for:

Notice period pay
Earned leave encashment
Severance pay
Maternity leave benefits
Full & Final (F&F) settlements

Calls for Investigation and Legal Action

The affected employees have requested the Karnataka Labour Commissioner to intervene and ensure pending payments are cleared. They are also calling for:

A regulatory investigation into the shutdown
Legal action against the company
Accountability for potential fund mismanagement

As uncertainty looms, former employees continue to fight for their rights, hoping for justice and financial relief after the abrupt end of their employment.