Edtech unicorn Unacademy has announced 350 job cuts in a second round of layoffs, which is about 10 per cent of the company’s team strength.
In an internal mail to its team, CEO Gaurav Munjal said: “We are no strangers to the harsh economic conditions that everyone is witnessing these days. These are very difficult times for the technology ecosystem. And things are getting worse with each passing day.” businessline has reviewed the email sent by Munjal.
He added that even though Unacademy realised this much earlier and took measures like reducing its monthly burn, controlling operational spends, limiting marketing budgets and identifying other redundancies within the organisation, it was not enough. “We need to keep optimising and building efficient systems for leaner and unprecedented times,” said Munjal.
In April, too, Unacademy laid off about 600 people, including employees and contractual workers from its core test-prep business. Prior to this, Unacademy has also implemented cost-cutting measures such as pay cuts for founders and management, shut down its global test prep platform, stopped complimentary meals and snacks.
The second round of layoffs at Unacademy will impact employees across the group in verticals that the company will either scale down or shut. “I am deeply saddened to share that we will have to say goodbye to some of our extremely talented Unacademy employees. I want to apologise to everyone sincerely since we made a commitment of no layoffs in the organisation but the market challenges have forced us to reevaluate our decisions. Funding has significantly slowed down and a large portion of our core business has moved offline,” Munjal added.
The impacted employees will be given severance pay equivalent of their notice period and an additional two months, accelerated 1 year vesting period, medical Insurance coverage for additional one year, dedicated placement and career support.