Unacademy sacks 380 employees in fourth round of mass layoffs in a year: Report
Unacademy, an edtech company, reportedly dismissed nearly 380 workers as part of its fourth round of mass cutbacks. As the boom seen during Covid diminishes, the tech industry across the globe is implementing strict cost-cutting measures.
Unacademy has laid off 12 per cent of its staff or about 380 employees, marking the edtech unicorn's fourth round of layoffs in past one year, according to Money Control, citing an internal letter sent by co-founder and chief executive Gaurav Munjal.
"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," note from CEO Munjal to all employees on the company's Slack channel, as viewed by Money Control, has stated.
"Unfortunately, this has led me to take another difficult decision. We will be reducing the size of our team by 12 percent to ensure that we can meet the goals we are chasing in the current realities we face. I did not anticipate I would have to do this again, and I'm very sorry," he added.
The affected workers will also receive severance compensation equal to the period of notice and an extra one month's pay, along with one year's accelerated payout for employees who have served the business for at least a year, according to the letter. Munjal also stated that the business would cover medical insurance for an extra six months, until September 30.
Unacademy mass layoffs
Within a year, Indian Edtech has undertaken at least four layoffs round, eliminating over 1,500 employees.
In November, in the third round of layoffs, the company fired 10% of its workforce, or approximately 350 workers.
Previously, in April 2022, the company laid off a few contract employees, tutors, and teachers, as well as 600 to 800 members of the sales and marketing team. This was followed by the adoption of a performance improvement plan, which resulted in the firing of 150 employees in June 2022.