In yet another wave of layoffs, edtech firm Unacademy is axing up to 350 workers in an effort to decrease expenses and generate a profit.
The Unacademy group’s creator and CEO, Gaurav Munjal, informed staff through an internal memo that the reorganization effort will affect 10% of groupwide Unacademy personnel.
“I am deeply saddened to share that we will have to say goodbye to some of our extremely talented Unacademy employees to reduce the redundancies in our operations. These would be across the Unacademy Group from verticals where we have to take a difficult decision either to scale down or shut,” Munjal wrote on Monday. ET has reviewed a copy of the email.
According to him, employees who were laid off would get severance pay equal to their notice period plus an extra two months, an accelerated one-year vesting period for Esops, a year’s worth of medical insurance, and dedicated placement support.
Although the firm had recognized that a slowdown was coming and had implemented certain strict measures, like lowering its monthly cash burn, managing operating expenses, limiting marketing spending, and finding further redundancies, Munjal claimed that such actions were insufficient. “We need to keep optimising and building efficient systems for leaner and unprecedented times,” he added.
Munjal tweeted on November 4 that Unacademy had decreased its monthly burn from $20 million to $7 million.
