Unacademy, the online learning platform based in India, has announced its second round of layoffs in less than a year. The company will reduce the size of its current team by 12 percent, according to a letter from Unacademy CEO Gaurav Munjal to employees. The company had laid off 10 percent of its workforce, amounting to 350 people, in November 2022.
Co-founder and CEO Gaurav Munjal confirmed the news in a letter to employees and said the decision was difficult but a necessary one.
Unacademy will give severance pay the equivalent of the notice period and an additional one month’s pay. They will also provide support to impacted employees, including accelerated vesting of one year, medical insurance coverage until September 30 and dedicated placement and career support, Munjal said.
In the letter, Munjal explained that the company had taken "every step in the right direction to make our core biz profitable, yet it’s not enough." He cited the current realities of the global economy, which is enduring a recession and scarce funding as reasons for the layoffs.
"Today's reality is a contrast from two years ago where we saw unprecedented growth because of the accelerated adoption of online learning. Today, running a profitable business is key," Munjal said in a letter sent on Slack to employees.
Unacademy had already laid off 10 percent of its workforce in November 2022, as part of a cost-cutting measure. Munjal acknowledged in his latest letter that he did not anticipate having to make another round of layoffs.
"We have to adapt to these changes, build and operate in a much leaner manner so we can truly create value for our users and shareholders," he wrote.
Unacademy, which is valued at $5.5 billion, has emerged as one of India's leading edtech companies, offering courses in various disciplines, including competitive exams, language, and programming.
The Bengaluru-based company has raised more than $440 million in funding from investors, including SoftBank, Facebook and Sequoia Capital.
However, Unacademy's latest move reflects the tough times that India's edtech companies are facing. Last month, Byju's, India's most valuable edtech company, fired over 900 employees in fresh layoffs.
Unacademy now joins the list of companies including Google, Meta, Amazon and Microsoft, that have announced mass layoffs in 2023.
First Published: Mar 30, 2023 9:52 AM IST
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