Unacademy CEO Comments On Startup Failures Amidst Layoffs Announcement

In a statement, the company explained that these layoffs were necessary steps in its ongoing strategy to optimise operations and prioritise sustainable growth and profitability

Unacademy CEO Gaurav Munjal (Image Source: X)

Source : Other

A day before Unacademy initiated a fresh round of layoffs affecting 250 employees across different departments, CEO Gaurav Munjal's engagement with a social media post discussing startup management challenges attracted considerable attention online.

On July 1, Munjal responded to a post by Bhavin Turakhia, founder of Zeta, on X (Formerly Twitter). Turakhia's post explored the concept of "premature founder boredom" as a significant factor leading to startup failures. He argued that the ultimate objective for any startup should be to transition into a "boring" business model characterised by sustainable profitability, an expanding market presence, and well-established operational frameworks across all functions.

Turakhia wrote on X, "Founders fall in love with chaos, ambiguity, and uncertainty (because variable rewards release dopamine) and can begin to detach themselves from their core business prematurely before it becomes boring, resulting in distraction, lack of focus, inefficient use of capital, and inefficient use of the best people.”

Munjal concisely wrote in the comment section, "Hits the right chords."

Hits the right chords.

— Gaurav Munjal (@gauravmunjal) July 1, 2024

Munjal's comment on Turakhia's post came just a day before Unacademy announced a fresh round of job cuts.

According to media reports, the 250 job cuts included 100 employees from core functions like marketing, business, and product development, while the remaining 150 were from sales. In a statement, the company explained that these layoffs were necessary steps in its ongoing strategy to optimise operations and prioritise sustainable growth and profitability.

"As part of our ongoing efforts to streamline operations and enhance business efficiency, we have recently undergone a restructuring exercise. This was necessary, keeping in mind the company's goals and vision for the year, as we focus all our efforts on sustainable growth and profitability. Consequently, some roles have been impacted. While this transition won’t be easy, we will be supporting all impacted individuals during this transition," reads the statement.