Edtech unicorn Unacademy is going to cut 12 per cent jobs in a fresh round of layoffs, Business Today has learned from sources. The company's co-founder Gaurav Munjal wrote to his employees in a message this morning and said that this step is being taken to reduce costs and achieve profitability.
The note read, "We will be reducing the size of our team by 12 per cent to ensure that we can meet the goals we are chasing in the current realities we face."
It is worth noting that Unacademy reduced its headcount by 1,350 through multiple downsizing rounds in 2022. Furthermore, as earlier reported by Business Today, the edtech startup canceled appraisals for the FY 2022-23 and promised that employees would be given stock options.
Munjal justified the layoffs in his note. He wrote, "Today's reality is a contrast from two years ago where we saw unprecedented growth because of the accelerated adoption of online learning. Today, the global economy is enduring a recession, funding is scarce, and running a profitable business is key. We have to adapt to these changes, and build and operate in a much leaner manner so we can truly create value for our users and shareholders."
"I never thought would need to send out another message like this, but here I am. We have taken every step in the right direction to make our core business profitable, yet it's not enough. We have to go further, we have to go deeper. Unfortunately, this has led me to take another difficult decision," Munjal wrote.
In FY 2021-22, Unacademy's losses stood at Rs 2,848 crore, up 85 per cent year-on-year (YoY) from Rs 1,537 crore in FY 2020-21. The revenues stood at Rs 719 crores in FY22.
Business Today has reached out to Unacademy for a response on the same. The copy would be updated with their response.
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