Edtech company Unacademy has announced that it will lay off 12% of its employees, or around 350 people, in a bid to make its core business profitable. The move comes as the global economic situation has become more challenging, and funding for the company has become scarce. The decision was communicated to staff in an internal note by Unacademy’s co-founder and CEO, Gaurav Munjal. Munjal acknowledged that the company had taken steps to make its core business profitable, but said that further action was necessary. He said, “We have to go deeper… Unfortunately, this has led me to take another difficult decision. We will be reducing the size of our team by 12% to ensure that we can meet the goals we are chasing in the current realities we face.”
Unacademy is backed by leading global investors, including General Atlantic, Tiger Global, and Softbank. The company’s first layoff occurred in April of last year, when it let go of 600 employees, leaving it with around 5,400 staff members. According to reports, Unacademy let go of around 350 employees in November, bringing its total headcount down to an estimated 3,000 in the space of a year.
Munjal noted that the global economy is currently experiencing a recession, and that running a profitable business is now key. He said that the company needs to “adapt to these changes, build and operate in a much leaner manner so we can truly create value for our users and shareholders.”
Affected employees will receive severance pay equivalent to their notice period, as well as an additional month’s pay and medical insurance until September 30. Munjal expressed regret at the decision, saying, “I did not anticipate I would have to do this again, and I’m very sorry.”
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